Who must sign a written agreement to modify the Southern Steer Multi-Unit Development Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Modifications to Franchise Agreement.
The Multi-Unit Developer acknowledges that (a) the terms, conditions and economics of the Franchise Agreement may be modified from time to time by the Franchisor, (b) any changes or modifications made to the Franchise Agreement in the future will not be applicable to any Franchise Agreement previously executed by the Multi-Unit Developer, and (c) the Multi-Unit Developer will be required to pay any additional Fees contained in any Franchise Agreement signed by the Multi-Unit Developer after the date 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 Southern Steer's 2025 Franchise Disclosure Document, the Multi-Unit Developer acknowledges that the terms, conditions, and economics of the Franchise Agreement may be modified by Southern Steer from time to time. Any changes or modifications made to the Franchise Agreement in the future will not apply to any Franchise Agreement previously executed by the Multi-Unit Developer. The Multi-Unit Developer will be required to pay any additional Fees contained in any Franchise Agreement signed after the date of the Multi-Unit Development Agreement.
This means that Southern Steer retains the right to change the Franchise Agreement for future franchisees or future agreements with existing franchisees. However, these changes will not retroactively affect previously signed agreements.
For a prospective franchisee, this highlights the importance of carefully reviewing the Franchise Agreement before signing, as future modifications could impact the financial obligations and operational requirements of the franchise. It is also important to note that the Multi-Unit Developer will be responsible for any additional fees included in any Franchise Agreement they sign after the date of the Multi-Unit Development Agreement.