Can Southern Steer waive obligations for other Multi-Unit Developers without waiving them for a specific Multi-Unit Developer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor will have 30 days after receipt of the Multi-Unit Developer's Offer to give the Multi-Unit Developer written notice of the Franchisor's desire to either waive its option to purchase ("Waiver Notice") or its intention to exercise its rights to purchase or acquire the Major Assets according to the terms contained in the Multi-Unit Developer's Offer ("Notice of Intent to Purchase").
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)
Based on the 2025 Southern Steer Franchise Disclosure Document, the franchisor has the option to waive its right to purchase the Multi-Unit Developer's assets. According to the FDD, the Multi-Unit Developer cannot transfer any interest in the agreement without first offering it to Southern Steer. Southern Steer then has 30 days to issue a Waiver Notice, indicating they waive their option to purchase, or a Notice of Intent to Purchase, indicating they intend to buy the assets under the same terms offered to the third party.
This clause protects Southern Steer by giving it the first opportunity to acquire a Multi-Unit Developer's existing locations and development rights if the Multi-Unit Developer decides to sell. This allows Southern Steer to maintain control over its brand and expansion strategy.
However, the FDD excerpt does not explicitly state whether Southern Steer can selectively waive obligations for some Multi-Unit Developers while enforcing them for others. The language focuses on the process Southern Steer follows when a Multi-Unit Developer intends to transfer their interest, giving Southern Steer the option to either purchase the assets or waive that right. To fully understand Southern Steer's ability to selectively waive obligations, a prospective franchisee should seek clarification from the franchisor regarding their policies and practices in this area.