What is the purpose of the 'Closing Acknowledgment' document related to the Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| This "Closing Acknowledgment", attached as Attachment J | to the Southern Steer Franchising International, | |
|---|---|---|
| LLC | Franchise Agreement ("Agreement"), dated | between Southern Steer |
| Franchising International, LLC | ||
| ("Franchisee"), must be completed before or at the same time Franchisee signs the Agreement. To the | ("Franchisor") and | |
| extent not defined herein, all capitalized references in this Closing Acknowledgment will have the meanings | ||
| as defined in the Agreement. | ||
| Maryland. | Do not sign this Questionnaire if you are a resident of Maryland or the business is to be operated in | |
| A. Relevant Dates. | ||
| : The date I received the Franchise Disclosure Document about | ||
| the Southern Steer Business franchise. | ||
| : The date I received a fully completed copy (other than | ||
| signatures) of the Agreement I later signed. | ||
| : The earliest date on which I signed the Agreement or any other | ||
| binding document (not including the receipt). | ||
| : The earliest date on which I delivered cash, check, or | ||
| consideration to a Franchisor | ||
| representative or any other salesperson | ||
| B. | Acknowledgement and Representations. Please answer and initial after each representation. | |
| As Franchisee know, Franchisee and Franchisor operation of a Southern Steer Business. This purpose of this closing acknowledgment is to determine whether any statements or promises were made to Franchisee be untrue, inaccurate or misleading, and to be certain that Franchisee that may be made by Franchisee by reason of the offer and sale of the Southern Steer and operation of Franchisee's Southern Steer Business. Please review each of the following questions carefully and provide honest responses to each question. | are entering into a Franchise Agreement for the that Franchisor has not authorized or that may understands the limitations on claims Business franchise | |
| 1. | Did Franchisee receive a copy of Franchisor's Franchise Disclosure Document (and all exhibits | |
| and attachments) at least (a) 14 days before the execution of the franchise or other agreement or payment | ||
| of any consideration; or (b) if Franchisee are a resident of Iowa at the earlier of first personal meeting or 14 | ||
| days before the execution of the franchise or other agreement or payment of any consideration or (c) if | ||
| Franchisee are a resident of New York or Rhode Island at the earlier of first personal meeting or 10 business | ||
| days before the execution of the franchise or other agreement or payment of any consideration; or (d) if | ||
| Franchisee are a resident of Michigan, Oregon or Washington 10 business days before the execution of any | ||
| binding agreement or payment of | ||
| any consideration. | ||
| Yes | No | Initial |
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 purpose of the Closing Acknowledgment, which is included as Attachment J to the Franchise Agreement, is to verify that no unauthorized or misleading statements or promises were made to the franchisee by Southern Steer. The document aims to confirm the franchisee understands the limitations on potential claims related to the Southern Steer business franchise. The Closing Acknowledgment is completed before or when the Franchise Agreement is signed. However, the document should not be signed by residents of Maryland or if the business will operate in Maryland.
The Closing Acknowledgment requires the franchisee to provide relevant dates, including when they received the Franchise Disclosure Document and the fully completed Franchise Agreement. It also asks for the dates when the franchisee signed the agreement and delivered any consideration to Southern Steer. The franchisee must acknowledge and initial each representation in the document, confirming they received the FDD within the legally required timeframe. Specific timeframes are mentioned for residents of Iowa, New York, Rhode Island, Michigan, Oregon, and Washington.
By completing the Closing Acknowledgment, Southern Steer seeks to ensure that franchisees are fully informed about the franchise opportunity and that they acknowledge the limitations on any claims they might make. This process is designed to protect both the franchisee and the franchisor by documenting the franchisee's understanding of the agreement and the absence of any unauthorized representations. This type of acknowledgement is a fairly common practice in franchising, intended to reduce future disputes by confirming the franchisee's due diligence and understanding of the terms.