What constitutes a termination without cause and a breach of the Southern Steer Franchise Agreement by the Franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
A termination of this Agreement by Franchisee or any action by Franchisee to convert its Southern Steer Business to another business in violation of this Agreement will be deemed to be a termination without cause and a breach hereof, by Franchisee and (a) such actions will not relieve Franchisee of, or release Franchisee from, any of its obligations under this Agreement; (b) Franchisee's obligations under this Agreement will remain in full force and effect; and (c) Franchisee will be obligated to fully perform all terms and conditions of this Agreement until such time as this Agreement expires or is terminated in accordance with the provisions of this Agreement and applicable law.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if a franchisee terminates the Franchise Agreement or takes action to convert their Southern Steer business to another business, it will be considered a termination without cause and a breach of the agreement. This means the franchisee remains obligated to fulfill all terms and conditions of the agreement until it expires or is terminated according to its provisions and applicable law.
Specifically, the Franchise Agreement states that such actions by the franchisee will not relieve them of their obligations. The franchisee will be required to continue performing all terms and conditions outlined in the agreement until it officially expires or is terminated as per the agreement's provisions and relevant legal standards.
This clause protects Southern Steer by ensuring franchisees cannot simply walk away from their contractual obligations without facing consequences. It reinforces the financial commitment franchisees make for the entire term of the agreement. Prospective franchisees should carefully consider this aspect, understanding that prematurely terminating or altering the business concept will not release them from their financial and operational responsibilities as defined in the Franchise Agreement.