What agreements, besides the Multi-Unit Development Agreement, could trigger termination if breached by a Southern Steer Multi-Unit Developer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
er the health or well-being of any of the customers or guests of the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses;
(h) the Multi-Unit Developer, its Owners, Operating Principal, Guarantors or a Controlled Entity breaches any provision, term or condition of this Agreement or any Franchise Agreement or other agreement between Multi-Unit Developer or Controlled Entity and Franchisor or its Affiliates and fails to cure such default within the period prescribed in such Franchise Agreement or other agreement;
(i) any check or EFT issued by the Multi-Unit Developer or Controlled Entity is dishonored because of insufficient funds (except where the check is dishonored because of bank error or an error in bookkeeping or accounting) or closed accounts more than three times during the Term of this Agreement;
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, several agreements besides the Multi-Unit Development Agreement can trigger termination if breached by a Multi-Unit Developer. These include the Franchise Agreement itself and the Non-Competition and Non-Disclosure Agreement. A breach of the non-compete and confidentiality covenants outlined in either of these agreements can lead to termination.
Specifically, the Franchise Agreement plays a significant role. The Multi-Unit Developer or their Controlled Entity must sign Southern Steer's current Franchise Agreements for each business opened, and failure to comply with the terms and conditions of these Franchise Agreements is treated as a breach of the Multi-Unit Development Agreement. Moreover, if any Franchise Agreement between the Multi-Unit Developer (or a Controlled Entity) and Southern Steer is terminated by either party for any reason, it can also result in the termination of the Multi-Unit Development Agreement.
In addition to breaches of specific agreements, Southern Steer can terminate the Multi-Unit Development Agreement if the developer, its owners, or controlled entity materially violates any federal, state, or municipal law applicable to the operations of the Southern Steer Businesses, including health department rules. Other actions that could lead to termination include involvement in acts that impair the goodwill associated with Southern Steer, engaging in unauthorized business practices, or failing to correct breaches after receiving notice from Southern Steer.