Does the Southern Steer Multi-Unit Developer have the right to franchise, sub-franchise, license or sublicense its rights under the agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Personal License.
The Multi-Unit Developer will not have the right to franchise, sub-franchise, license or sublicense its rights under this Agreement.
The Multi-Unit Developer will not have the right to Transfer this Agreement or its rights under this Agreement, except asspecifically provided for in Section 7.2.
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, the Multi-Unit Developer does not have the right to franchise, sub-franchise, license, or sublicense its rights under the agreement. The agreement is considered a personal license, meaning the rights granted are specific to the Multi-Unit Developer and cannot be transferred to another party, except as specifically provided in Section 7.2 of the agreement.
This restriction means that the Multi-Unit Developer must personally oversee the development and operation of the Southern Steer businesses within their designated territory. They cannot delegate the franchising or sub-franchising responsibilities to another entity. This ensures that Southern Steer maintains control over who is granted the right to operate Southern Steer businesses and uphold brand standards within the development territory.
Furthermore, the Multi-Unit Developer is also restricted from transferring the agreement or its rights, except as outlined in Section 7.2. This clause gives Southern Steer more control over who can develop stores within a specific territory. Any potential transfer of ownership or rights would need to adhere to the conditions specified in Section 7.2, which likely involves approval from Southern Steer. This provision helps Southern Steer maintain consistency and quality across all franchised locations by carefully vetting potential new developers.