Under the Southern Steer Multi-Unit Development Agreement, can the Multi-Unit Developer transfer the agreement or its rights under the agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Multi-Unit Developer will not have the right to franchise, sub-franchise, license or sublicense its rights under this Agreement.
The Multi-Unit Developer will not have the right to Transfer this Agreement or its rights under this Agreement, except asspecifically provided for in Section 7.2.
**3.
TERM.**
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 is restricted from transferring the Multi-Unit Development Agreement or its rights under the agreement, except as specifically provided for in Section 7.2 of the agreement. This means that a Multi-Unit Developer cannot freely assign or transfer their development rights to another party without specific authorization from Southern Steer.
Furthermore, the Multi-Unit Developer is also restricted from transferring ownership interests in the Multi-Unit Developer entity itself until those interests have first been offered to Southern Steer in writing, presenting the same terms and conditions as offered to any other party. Southern Steer then has 30 days to accept the offer to purchase these ownership interests. If Southern Steer declines to exercise this option, the owner must still comply with the provisions outlined in Section 7 of the agreement.
Southern Steer, however, retains the right to unilaterally transfer and assign the Multi-Unit Development Agreement to another person or entity without requiring the Multi-Unit Developer's approval. This clause ensures that Southern Steer has the flexibility to reorganize or transfer its franchise operations as it sees fit, which is a common practice in franchising to maintain control and ensure business continuity.