Does the Southern Steer MUDA allow for renewal or extension of the agreement term?
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 | |||
| b. | Renewal or extension of the | Not applicable | |
| term | |||
| c. | Requirements for You to | Not applicable | |
| renew or extend |
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 Multi-Unit Development Agreement (MUDA) does not offer renewal or extension options. The agreement's term begins on the effective date and concludes on the last day of the calendar month when the final Southern Steer business is required to be developed and opened, as outlined in the Development Schedule.
This means that once the MUDA term ends, the multi-unit developer does not have a contractual right to extend their development rights or renew the agreement. This is a crucial point for prospective multi-unit developers to consider, as it dictates the timeframe within which they must develop the agreed-upon number of Southern Steer locations.
Without renewal options, developers need to carefully plan their development schedule to maximize their investment within the initial agreement term. If a developer anticipates needing more time, they should discuss potential options with Southern Steer before signing the MUDA. It is also important to note that while the MUDA itself may not be renewable, individual franchise agreements for each Southern Steer location may have their own renewal terms, which would be governed by the terms of the franchise agreement, not the MUDA.