Does the Southern Steer franchisee have an opportunity to cure a default if they are convicted of a crime?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will be deemed to be in Default subject to immediate termination of this Agreement and the rights granted herein or the exercise of any other remedies in accordance with Sections 20.4 and 20.5, without prior notice of the default from the Franchisor and without an opportunity to cure the Default unless precluded by applicable law or otherwise as stated herein, if any of the following events occur:
- (a) the Franchisee, Owners, Operating Principal or the Designated Manager(s) are convicted of, or plead guilty to a charge of violating any law relating to the Franchisee's Southern Steer Business or that adversely affects the operation, maintenance, reputation, or goodwill of the Southern Steer Business, System, the Marks or the Franchisor;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee generally does not have an opportunity to cure a default if they, their owners, operating principal, or designated managers are convicted of a crime. Specifically, this applies if they are convicted of or plead guilty to violating any law relating to the Southern Steer business or that adversely affects its operation, maintenance, reputation, or goodwill.
This means that if a franchisee or associated individual is convicted of a relevant crime, Southern Steer can immediately terminate the franchise agreement without providing an opportunity to correct the issue. This is a stricter standard than some other default scenarios, where a cure period is provided.
This immediate termination clause highlights the importance Southern Steer places on maintaining its brand reputation and the legal compliance of its franchisees. A prospective franchisee should understand that certain legal missteps can lead to immediate loss of their franchise.