Are the Multi-Unit Developer and Southern Steer required to seek legal counsel during negotiation?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Multi-Unit Developer acknowledges that this Agreement constitutes a legal document which grants certain rights to and imposes certain obligations upon the Multi-Unit Developer. The Multi-Unit Developer has been advised by the Franchisor to retain an attorney or advisor prior to the execution of this Agreement to review the Southern Steer Franchising International, LLC Franchise Disclosure Document, to review this Agreement in detail, to review all legal documents, to review the economics, operations and other business aspects of the Southern Steer Businesses, to determine compliance with franchising and other applicable laws, to advise the Multi-Unit Developer on economic risks, liabilities, obligations and rights under this Agreement and to advise the Multi-Unit Developer on tax issues, financing matters, applicable state and federal laws, liquor laws, health and safety laws, environmental laws, employee issues, insurance, structure of the butcher shop and specialty grocery store business, and other legal and business matters.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, while not explicitly required for either party, it is strongly recommended that the Multi-Unit Developer seek independent legal counsel. Southern Steer advises the Multi-Unit Developer to consult with an attorney or advisor before signing the agreement.
This recommendation is to ensure the Multi-Unit Developer fully understands the legal and business implications of the agreement. The legal counsel can review the Franchise Disclosure Document, the agreement itself, and other relevant legal documents. They can also advise on the economics, operations, and other business aspects of the Southern Steer business, ensuring compliance with franchising and other applicable laws.
The legal counsel can also advise the Multi-Unit Developer on potential economic risks, liabilities, obligations, and rights under the agreement. Furthermore, they can provide guidance on tax issues, financing matters, applicable state and federal laws, liquor laws, health and safety laws, environmental laws, employee issues, insurance, the structure of the butcher shop and specialty grocery store business, and other legal and business matters. This thorough review helps the Multi-Unit Developer make an informed decision and protect their interests.