What happens if a Southern Steer franchisee fails to meet the Development Schedule in the MUDA?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a Multi-Unit Development Agreement (MUDA) grants a franchisee the right to develop and operate multiple Southern Steer businesses within a specific Development Territory. The Development Schedule, which is part of the MUDA, outlines the timeline for opening these locations.
If a Southern Steer franchisee fails to meet any obligations under the MUDA, including adhering to the Development Schedule, Southern Steer has the right to terminate the franchisee's right to develop, open, and operate new Southern Steer businesses within the Development Territory. However, the termination of the MUDA does not automatically terminate the existing Franchise Agreements, provided the franchisee is in compliance with those agreements.
After the MUDA expires or is terminated, and after the franchisee has opened their first Southern Steer Business in the Development Territory, Southern Steer reserves the right to operate, franchise, or license others to operate additional Southern Steer Businesses anywhere, including within the franchisee's Development Territory. The only exception to this is any Protected Areas that remain in effect under the existing Franchise Agreements. This means that while a franchisee might lose the right to develop additional units, their existing store's protected area remains intact as long as they are meeting the terms of their franchise agreement.