What representation does the Multi-Unit Developer make regarding the Development Schedule for Southern Steer Businesses?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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 acknowledges the Development Schedule outlined in Attachment A as a crucial part of their agreement. This schedule dictates the timeline for opening Southern Steer locations within the designated Development Territory. The Multi-Unit Developer's compliance with this schedule is determined by the number of Southern Steer Businesses that are actually open and continuously operating in the Development Territory as of a specific date. The agreement mandates that the Multi-Unit Developer must establish and maintain a minimum of three Southern Steer Businesses within their territory.
The Multi-Unit Developer is obligated to adhere to the Development Schedule by opening a certain number of Southern Steer locations within each 12-month Development Period, starting from the agreement's effective date. This requirement overrides any conflicting provisions in the standard Franchise Agreement, ensuring that the Development Schedule takes precedence. The agreement emphasizes that adhering to the Development Schedule is critical, stating that time is of the essence.
Furthermore, the Multi-Unit Developer represents that they have independently assessed the feasibility of establishing Southern Steer Businesses within their Development Territory and have concluded that the Development Schedule is both reasonable and achievable. This representation signifies that the developer has conducted thorough due diligence and is confident in their ability to meet the agreed-upon development milestones. Failure to comply with the Development Schedule can result in termination of the agreement, potentially impacting the developer's rights to expand further within the territory.