Under what conditions can amendments or variations to the Southern Steer agreement be considered effective?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
e Agreement for that Southern Steer Business will be the obligation of the Controlled Entity, and not the Multi-Unit Developer.
- 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.
- Conditions. The Multi-Unit Developer hereby undertakes the obligation to develop and open franchised Southern Steer Businesses using the System in the Development Territory in strict compliance with the terms and conditions of this Agreement for the Term 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 the 2025 Southern Steer Franchise Disclosure Document, modifications to the Franchise Agreement may occur from time to time by the Franchisor. However, 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. 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.
Specifically, 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 amended to state that payment of the initial franchise fee and development fee will be deferred until Southern Steer has satisfied their pre-opening obligations, and the franchisee has commenced business operations.
For a multi-unit developer, this means that while the core terms of previously signed agreements remain intact, any new agreements they sign will reflect the current modifications. This ensures that Southern Steer can adapt its franchise model over time without retroactively altering existing franchisee relationships. However, it also means that multi-unit developers need to stay informed about any changes to the agreement and factor in potential fee increases for each new location they plan to open.