Where can I find the definition of 'cause' for termination in the Southern Steer MUDA?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| f. | Termination by franchisor | 8.1 | If you breach the MUDA. | | | with cause | | | | g. | "Cause" defined – curable defaults | 8.2 | We have the right (subject to state law) to terminate the MUDA upon 30-days' notice if You or Your Controlled Entity failed to comply with the standards and Brand Manual as described in any Franchise Agreement; You fail to obtain required approvals; or any other reason that constitutes good cause under applicable law. | | h. | "Cause" defined – non curable defaults | 8.1 | We have the right (subject to state law) to terminate the MUDA immediately upon receipt of notice if Multi-Unit Developer (You): fail to cure the default of your Development Schedule in the MUDA; cease to engage in development activities; fail to pay uncontested obligations or liabilities, are deemed insolvent; make an assignment for the benefit of creditors; or Your Owners, Operating Principal, Executive Management, Guarantors or Controlled Entity are convicted of, or plead guilty to or no contest to a charge of violating any law or materially violates any federal, state or municipal law, rule, code or regulation applicable to the operations of the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses, breaches any provision, term or condition of this Agreement or any Franchise Agreement or other agreement between Multi-Unit Developer or Controlled Entity and Franchisor or its Affiliates and fails to cure such default within the period | | | Provision | Section in | Summary | | | | | MUDA | | | |----|---------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------|--| | | | | prescribed; any check or EFT issued by the | | | | | | Multi-Unit Developer or Controlled Entity is | | | | | | | | | | | | dishonored; are involved in any act or conduct | | | | | | which | | | | | | materially | | | | | | impairs | | | | | | the | | | | | | goodwill | | | | | | associated with "Southern Steer Butcher," any | | | | | | other of the Marks or with the System that is not | | | | | | cured | | | | | | within | | | | | | 24 | | | | | | hours; | | | | | | engages | | | | | | in | | | | | | any | | | | | | unauthorized business or practice or sells any | | | | | | unauthorized product or service under the | | | | | | Franchisor's Marks, any Franchise Agreement | | | | | | between You and Franchisor is terminated; or | | | | | | Your Owners, Operating Principal, Executive | | | | | | Management, Guarantors or Controlled Entity | | | | | | breach the non-compete and confidentiality | | | | | | covenants in the Franchise Agreement; two or | | | | | | more | | | | | | defaults | | | | | | in | | | | | | a | | | | | | Development | | | | | | Period | | | | | | regardless of whether the defaults are cured; or | | | | | | assign the MUDA or rights therein without | | | | | | complying with Section 7.2. | |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the definition of 'cause' for termination in the Multi-Unit Development Agreement (MUDA) can be found in Sections 8.1 and 8.2 of the MUDA. Section 8.2 outlines 'cause' related to curable defaults, stating that Southern Steer has the right to terminate the MUDA with 30 days' notice if the Multi-Unit Developer fails to comply with the standards and Brand Manual as described in any Franchise Agreement, fails to obtain required approvals, or for any other reason that constitutes good cause under applicable law.
Section 8.1 describes 'cause' related to non-curable defaults, allowing Southern Steer to terminate the MUDA immediately upon notice. This includes situations where the Multi-Unit Developer fails to cure a default in their Development Schedule, ceases development activities, fails to pay uncontested obligations, is deemed insolvent, makes an assignment for the benefit of creditors, or if their Owners, Operating Principal, Executive Management, Guarantors, or Controlled Entity are convicted of violating any law or materially violates any federal, state, or municipal law applicable to the Southern Steer Businesses.
Additionally, immediate termination can occur if the Multi-Unit Developer breaches any provision of the MUDA or any Franchise Agreement and fails to cure the default within the prescribed period, if any check or EFT is dishonored, or if they engage in any act that materially impairs the goodwill associated with the Southern Steer brand and fails to cure it within 24 hours. Other causes include engaging in unauthorized business practices, selling unauthorized products or services under Southern Steer's Marks, termination of any Franchise Agreement between the developer and Southern Steer, or breaches of non-compete and confidentiality covenants. Two or more defaults in a Development Period, regardless of whether they are cured, or assigning the MUDA without complying with Section 7.2 also constitute cause for immediate termination.