In the Southern Steer Multi-Unit Development Agreement, what information is specified for each development period regarding the opening of Southern Steer businesses?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
designate from time to time.
5. DEVELOPMENT SCHEDULE.
- Development Schedule. The Multi-Unit Developer acknowledges and agrees that the Development Schedule set forth in Attachment A is a material provision of this Agreement. For purposes of determining compliance with the Development Schedule set forth in this Section 5.1, only the Multi-Unit Developer's Southern Steer Businesses actually open and continuously operating in the Development Territory as of a given date will be counted toward the number of Southern Steer Businesses required to be open and continuously operating. The Multi-Unit Developer will be required to open and operate a minimum of three Southern Steer Businesses in the Development Territory.
- Development Periods. At a minimum, the Multi-Unit Developer shall develop the number of Southern Steer Business in the Development Territory during each 12-month period from the Effective Date of this Agreement ("Development Period") in accordance with the Development Schedule. Notwithstanding any provision in the Franchise Agreement to the contrary, the Multi-Unit Developer will be required to open the Southern Steer Businesses developed by the Multi-Unit Developer under this Agreement according to the Development Periods set forth in the Development Schedule, and the Franchise Agreement for each of the Multi-Unit Developer's Southern Steer Businesses will be deemed to be amended accordingly. The Multi-Unit Developer agrees that time is of the essence with respect to compliance with the Development Schedule.
- Reasonableness of Development Schedule. The Multi-Unit Developer represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of Southern Steer Businesses within the Development Territory and approves of the Development Schedule as being reasonable and viable.
6. OTHER OBLIGATIONS OF MULTI-UNIT DEVELOPER.
- Franchise Agreements. The Multi-Unit Developer or a Controlled Entity must sign our then-current Franchise Agreements for each Southern Steer Business opened under the terms of this Agreement. These Franchise Agreements may not be the same as the Initial Franchise Agreement. The Franchisee agrees to comply with the terms and conditions of each Franchise Agreement as a part of its obligations hereunder and acknowledges that failure to execute and comply with such Franchise Agreements shall be treated as a breach of this Agreement.
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 Development Agreement includes a development schedule that outlines the requirements for opening Southern Steer businesses within a specific territory. The agreement specifies that the Multi-Unit Developer must adhere to the development schedule outlined in Attachment A, which is considered a material provision of the agreement. Compliance with the schedule is determined by the number of Southern Steer businesses that are actually open and continuously operating in the designated Development Territory as of a particular date. The Multi-Unit Developer is obligated to open and operate a minimum of three Southern Steer Businesses in the Development Territory.
Each 12-month period from the agreement's effective date is defined as a "Development Period," during which the Multi-Unit Developer must develop a certain number of Southern Steer businesses according to the Development Schedule. The Franchise Agreement for each Southern Steer business developed under the Multi-Unit Development Agreement will be amended to align with these Development Periods. Southern Steer emphasizes that adhering to the Development Schedule is critical, stating that "time is of the essence" for compliance.
Before entering into the agreement, Southern Steer requires the Multi-Unit Developer to conduct an independent investigation and analysis of the prospects for establishing Southern Steer businesses within the Development Territory. By signing the agreement, the Multi-Unit Developer confirms that they find the Development Schedule reasonable and viable. The FDD includes a table structure to show how the development periods are laid out, but the table is not populated with any data.