Does the Southern Steer Franchise Agreement grant franchisees any options to acquire additional franchises within their Protected Area?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement does not grant any options, rights of first refusal or similar rights to You for the acquisition of additional franchises within Your Protected Area or contiguous areas.
Multi- Unit Development Agreement
Under the MUDA, You are granted the right to develop and operate multiple Southern Steer Business within the Development Territory. Unless terminated early (and so long as You are in compliance with the MUDA and Your First Franchise Agreement), We will not own, operate, franchise or license any other Southern Steer Businesses in the Development Territory, (other than in Non-Traditional Locations or via an authorized delivery service program) during the period of time You are granted to open the first Southern Steer Business as described in the Development Schedule attached as Attachment A to Your MUDA ("First Development Period").
If You fail to meet any of Your obligations under the MUDA, including compliance with the Development Schedule, or breach any of Your Franchise Agreement(s), We may terminate Your right to develop, open and operate new Southern Steer Businesses within the Development Territory. However, the termination of the right to develop Your Development Territory will not terminate any rights granted under the Franchise Agreement(s) then in effect so long as You are in compliance with the terms of such Franchise Agreement(s). After the expiration or termination of Your MUDA and after the opening of Your first Southern Steer Business in the Development Territory, We may own, operate, franchise or license others to operate additional Southern Steer Businesses anywhere, without restriction, including in Your Development Territory, except for any Protected Areas under Your Franchise Agreement(s) that then remain in effect.
Source: Item 12 — ITEM. 12 TERRITORY (FDD pages 35–38)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the standard Franchise Agreement does not grant franchisees any options, rights of first refusal, or similar rights to acquire additional franchises within their Protected Area or contiguous areas. However, Southern Steer does offer a Multi-Unit Development Agreement (MUDA) under which a franchisee is granted the right to develop and operate multiple Southern Steer businesses within a defined Development Territory.
Under the MUDA, Southern Steer agrees not to operate, franchise, or license any other Southern Steer businesses in the Development Territory during the initial development period, with exceptions for Non-Traditional Locations or authorized delivery service programs, provided the franchisee complies with the MUDA and their first Franchise Agreement. Non-Traditional Locations include transportation facilities, sporting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets.
However, if a Southern Steer franchisee fails to meet their obligations under the MUDA, including adhering to the Development Schedule, Southern Steer may terminate their right to develop and operate new Southern Steer businesses within the Development Territory. After the MUDA expires or is terminated, Southern Steer can operate or franchise additional locations in the former Development Territory, except within the Protected Areas of existing franchises. The MUDA itself does not grant any options, rights of first refusal, or similar rights for acquiring additional development rights in the Development Territory or adjacent areas.
It is important to note that neither the Protected Area nor the Development Territory are exclusive, meaning franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. Southern Steer also reserves the right to develop other specialty butcher and grocery business concepts under different brand names, even within a franchisee's Protected Area or Development Territory. Additionally, Southern Steer can sell products and services under other names and marks through alternative channels and operate Southern Steer businesses from Non-Traditional Locations anywhere.