What constitutes a default under the Southern Steer franchise agreement related to account balances?

According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee will be in default of their franchise agreement if any check or EFT (electronic funds transfer) issued by the franchisee is dishonored due to insufficient funds. An exception exists if the dishonor is due to an error in bookkeeping or accounting. Default also occurs if the franchisee has closed bank accounts.

This means that Southern Steer franchisees must maintain sufficient funds in their accounts to cover all payments to Southern Steer. If a payment is rejected due to insufficient funds and it's not a result of a clerical error, Southern Steer can declare the franchisee in default, which can lead to termination of the franchise agreement.

It is important for prospective Southern Steer franchisees to ensure they have sound financial management practices in place to avoid any issues with payments. Franchisees should reconcile their accounts regularly and maintain a sufficient buffer to cover all payments to Southern Steer. Additionally, franchisees should promptly address any bookkeeping or accounting errors that may lead to dishonored payments to avoid default.