Does applicable law ever preclude immediate termination of the Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will be deemed to be in Default subject to immediate termination of this Agreement and the rights granted herein or the exercise of any other remedies in accordance with Sections 20.4 and 20.5, without prior notice of the default from the Franchisor and without an opportunity to cure the Default unless precluded by applicable law or otherwise as stated herein, if any of the following events occur:
- (a) the Franchisee, Owners, Operating Principal or the Designated Manager(s) are convicted of, or plead guilty to a charge of violating any law relating to the Franchisee's Southern Steer Business or that adversely affects the operation, maintenance, reputation, or goodwill of the Southern Steer Business, System, the Marks or the Franchisor;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, under certain circumstances, applicable law may preclude the immediate termination of the franchise agreement. Specifically, Southern Steer can immediately terminate the agreement without prior notice or an opportunity to cure a default, unless such immediate termination is precluded by applicable law.
Immediate termination can occur if the franchisee, owners, operating principal, or designated managers are convicted of or plead guilty to violating any law relating to the Southern Steer business, or if their actions adversely affect the operation, maintenance, reputation, or goodwill of the Southern Steer business, the system, the marks, or Southern Steer itself.
However, in most other default situations, Southern Steer is required to provide written notification of the default and an opportunity for the franchisee to correct the default within a specified period. This cure period can be 30 days after the notice, a shorter period expressly stated in the agreement for certain defaults, or a longer period if required by applicable law. This means that a franchisee may have legal protections that prevent Southern Steer from immediately terminating the agreement, depending on the specific circumstances and the laws governing the franchise relationship.