Under the Southern Steer Multi-Unit Development Agreement, in whose discretion will any consent, approval, authorization, clearance, exemption, waiver, or similar affirmation required from or by the Franchisor be granted or withheld?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisor's Consent. Except where expressly provided to the contrary, any consent, approval, authorization, clearance, exemption, waiver, or similar affirmation required from or by the Franchisor under the terms of this Agreement will be granted or withheld by the Franchisor in its reasonable discretion.
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, any consent, approval, authorization, clearance, exemption, waiver, or similar affirmation required from or by the Franchisor under the terms of the Multi-Unit Development Agreement will be granted or withheld by Southern Steer in its reasonable discretion.
This means that as a Multi-Unit Developer, you will need to obtain Southern Steer's approval for various aspects of your operations. The franchisor has the authority to decide whether or not to grant these requests, and they are expected to make these decisions reasonably.
This clause gives Southern Steer a degree of control over the Multi-Unit Developer's activities, ensuring that they adhere to the standards and requirements of the franchise system. It is important for potential Multi-Unit Developers to understand that these decisions are at the discretion of Southern Steer, and while the discretion is expected to be reasonable, there is still a possibility that a request could be denied.