What is the length of the Southern Steer agreement term as defined in Section 3 of the MUDA?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in MUDA | Summary | |
|---|---|---|---|
| a. | Length of agreement term | 3 | Begin on the Effective Date and end on the last |
| day of the calendar month that the final Southern | |||
| Steer Business is required to be developed and | |||
| opened under the Development Schedule |
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 length of the Multi-Unit Development Agreement (MUDA) term is detailed in Section 3. The agreement begins on the Effective Date and concludes on the last day of the calendar month in which the final Southern Steer Business is required to be developed and opened, as specified in the Development Schedule.
This means the term's duration is not fixed but depends on the agreed-upon schedule for opening multiple Southern Steer locations. A prospective franchisee should carefully review the Development Schedule in the MUDA to understand the specific dates and deadlines for opening each location, as this directly impacts the overall length of the agreement.
Unlike a standard franchise agreement with a fixed term (e.g., 10 years), the MUDA's term is tied to the franchisee's performance in meeting development obligations. Failure to adhere to the Development Schedule could lead to termination of the agreement, as outlined in Section 8.1 regarding non-curable defaults. Therefore, a franchisee needs to assess their capacity to meet the development milestones before entering into the MUDA with Southern Steer.