What actions are considered misuse of the Southern Steer System that could lead to immediate termination?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(p) violation of the transfer or assignment provisions of this Agreement;
(q) Franchisee creates a sub-franchise of any kind under applicable law;
(r) commission of a Default that is by its nature not curable;
(s) the Franchisee has failed or refused to comply with any mandatory specification, standard, or operating procedure prescribed by the Franchisor relating to the cleanliness or sanitation of the Southern Steer Business, and the Franchisee fails to correct the breach within 24 hours after receipt of written notice of the breach from the Franchisor;
(t) the Franchisee has violated any health, safety, or sanitation law, ordinance, or regulation that the Franchisor reasonably believes may pose harm to the public or to the reputation of the Franchisee, the Franchisor, or the System, and the Franchisee fails to correct the breach within 24 hours after receipt of written notice of the breach from the Franchisor; or
(u) the Lease for the Franchised Location is terminated or canceled for non-payment of rent or other legal reasons or the Franchisee is evicted from the Franchised Location.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, several actions are considered a misuse of the Southern Steer system that could lead to immediate termination of the franchise agreement. These include violating transfer or assignment provisions, creating an unauthorized sub-franchise, or committing a default that cannot be corrected.
Specifically, immediate termination can occur if a Southern Steer franchisee fails to comply with cleanliness or sanitation standards and does not correct the breach within 24 hours of receiving written notice. Similarly, violating health, safety, or sanitation laws that could harm the public or the reputation of the franchise, franchisor, or system, and failing to correct it within 24 hours after notice, can also lead to immediate termination.
Additionally, Southern Steer may terminate the agreement immediately if the lease for the franchised location is terminated due to non-payment of rent or eviction. These terms highlight the critical importance of adhering to Southern Steer's operational standards, legal compliance, and financial obligations to maintain the franchise agreement and avoid immediate termination.