What constitutes abandonment of Southern Steer development activities that could lead to termination?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) the Multi-Unit Developer ceases to actively engage in development activities in the Development Territory in order to meet the Development Schedule or otherwise abandons the business authorized hereunder for a period of three consecutive months, or any shorter period that indicates an intent by the Franchisee to discontinue development of Southern Steer Businesses in the Development Territory;
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 the 2025 Southern Steer Franchise Disclosure Document, a Multi-Unit Developer can face termination of their development agreement if they cease active engagement in development activities within their designated territory. This includes failing to meet the development schedule outlined in Section 5 and Attachment A, which specifies the required number of Southern Steer businesses that must be open and operating.
Specifically, if a Multi-Unit Developer abandons their development activities for three consecutive months, or any shorter period that indicates an intent to discontinue development, Southern Steer can terminate the agreement. This clause protects Southern Steer's interests by ensuring that developers actively pursue the expansion of the brand within their territories.
It is important to note that termination due to failure to meet the development schedule does not affect individual Franchise Agreements for Southern Steer businesses already opened and operating. However, all rights to open and operate additional Southern Steer businesses in the Development Territory revert to Southern Steer upon termination. This means that while existing franchises remain, the developer loses the opportunity to further expand within the territory.