Can oral agreements modify the Southern Steer Multi-Unit Development Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Multi-Unit Developer and Controlled Entity acknowledge that, it has not received any estimates, projections, representations, warranties or guaranties, expressed or implied, regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, value of the Southern Steer Businesses, or other economic matters pertaining to the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses from the Franchisor or any of its agents that were not expressly set forth in the Franchise Disclosure Document received by the Multi-Unit Developer and Controlled Entity (if any) from the Franchisor ("Representations").
The Multi-Unit Developer and Controlled Entity further acknowledges that if it had received any such Representations, it would not have executed this Agreement, promptly notified the Executive Management of the Franchisor in writing of the person or persons making such Representations and provided to the Franchisor a specific written statement detailing the Representations made.
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)
Based on the 2025 Southern Steer Franchise Disclosure Document, the Multi-Unit Developer acknowledges that they have not received any representations from Southern Steer or its agents regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, value of the Southern Steer Businesses, or other economic matters that were not expressly set forth in the Franchise Disclosure Document.
The Multi-Unit Developer further acknowledges that if it had received any such representations, it would not have executed the Multi-Unit Development Agreement, promptly notified the Executive Management of Southern Steer in writing of the person or persons making such representations, and provided to Southern Steer a specific written statement detailing the representations made. This acknowledgement serves to protect Southern Steer from claims based on verbal promises or projections not documented in the FDD or the agreement itself.
This clause emphasizes the importance of written documentation and formal communication channels. A prospective Southern Steer multi-unit developer should be aware that any verbal assurances or promises made by Southern Steer representatives that are not explicitly included in the Franchise Disclosure Document or the Multi-Unit Development Agreement are not binding. Therefore, it is crucial for the developer to ensure that all material terms and conditions are documented in writing before signing the agreement.