What specific statement regarding representations made in the Southern Steer franchise disclosure document is included in Section 27.3 of the Franchise Agreement and Section 15.5 of the 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)
According to the 2025 Southern Steer Franchise Disclosure Document, multi-unit developers acknowledge that they have not received any estimates, projections, representations, warranties, or guarantees regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, the value of the Southern Steer Businesses, or other economic matters that were not expressly set forth in the Franchise Disclosure Document. This acknowledgement covers both expressed and implied representations.
Furthermore, the multi-unit developer acknowledges that if they had received any such representations not included in the FDD, they would not have executed the agreement. They would have promptly notified the Executive Management of Southern Steer in writing, identifying the person making the representations and providing a specific written statement detailing the representations made.
This clause is designed to protect Southern Steer from claims based on verbal or undocumented promises. It emphasizes that prospective franchisees should rely solely on the information provided in the Franchise Disclosure Document and to report any conflicting information they may have received. This ensures transparency and protects both parties by documenting the information upon which the franchise agreement is based.