What is the definition of 'Breach Notice' in the context of the Southern Steer Multi-Unit Development Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor shall have the right to terminate this Agreement (subject to any state laws to the contrary, where state law shall prevail), effective upon 30 days written notice to the Franchisee ("Breach Notice"), if the Franchisee breaches any provision of this Agreement other than those provisions listed in Section 8.1 above and fails to cure the default during such 30 day period.
In that event, effective upon expiration of the 30 day period, this Agreement will terminate without further notice to the Franchisee.
Defaults shall include, but not be limited to, the following:
(a) the Multi-Unit Developer or Controlled Entity fails to maintain the then current operating procedures and adhere to the specifications and standards established by the Franchisor as set forth herein or in the Brand Manual, defined and described in the Franchise Agreement, or as otherwise communicated to the Franchisee;
(b) the Multi-Unit Developer fails, refuses or neglects to obtain the Franchisor's prior written approval or consent as required by this Agreement; or
(c) the Multi-Unit Developer commits any other act that constitutes good cause under applicable law or court decisions.
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 "Breach Notice" is a written notice the Franchisor provides to the Franchisee, giving them 30 days to correct any breach of the Multi-Unit Development Agreement. This notice is issued when the franchisee violates any term of the agreement, except for those specifically mentioned in Section 8.1. If the franchisee fails to fix the issue within the 30-day period, the agreement ends without any further notice.
Several actions can trigger a Breach Notice. These include failing to follow Southern Steer's operating procedures and standards, neglecting to obtain required prior written approval from Southern Steer, or committing any act that constitutes good cause for termination under applicable law or court decisions.
This means that as a prospective Southern Steer multi-unit developer, it is crucial to understand and adhere to all terms outlined in the Multi-Unit Development Agreement to avoid receiving a Breach Notice. Failure to comply and rectify the breach within the given timeframe could lead to the termination of the agreement and potential loss of development rights.