Under the Southern Steer Multi-Unit Development Agreement, during each Development Period, how should the Multi-Unit Developer develop the number of Southern Steer Businesses in the Development Territory?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
5. DEVELOPMENT SCHEDULE.
- 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, a Multi-Unit Developer must adhere to the Development Schedule outlined in Attachment A of the Multi-Unit Development Agreement. During each 12-month Development Period from the agreement's effective date, the developer is required to open the number of Southern Steer businesses in the Development Territory as specified in this schedule. The agreement emphasizes that time is of the essence in complying with the Development Schedule. To be counted toward meeting the schedule, Southern Steer Businesses must be open and continuously operating in the Development Territory. The Multi-Unit Developer must open and operate a minimum of three Southern Steer Businesses in the Development Territory.
This means a prospective Multi-Unit Developer needs to carefully review and understand the Development Schedule before signing the agreement. The schedule dictates the pace at which they must open new locations, and failure to meet these deadlines could have consequences. The developer also confirms that they have independently investigated the viability of establishing Southern Steer businesses within their territory and find the Development Schedule reasonable.
It's important to note that the Franchise Agreements signed for each Southern Steer Business opened under the Multi-Unit Development Agreement may not be the same as the Initial Franchise Agreement. The terms, conditions, and economics of the Franchise Agreement can be modified by Southern Steer from time to time. 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 after the date of the Multi-Unit Development Agreement.
Termination of the Multi-Unit Development Agreement due to failure to meet the Development Schedule will not affect the individual Franchise Agreements for Southern Steer Businesses already opened and operating. However, all rights to open and operate additional Southern Steer Businesses in the Development Territory will revert to Southern Steer. Therefore, prospective developers should assess their ability to meet the specified timelines and financial obligations before entering into a Multi-Unit Development Agreement with Southern Steer.