Does the Southern Steer MUDA specify any cure periods for breaches that could lead to termination?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| f. | Termination by franchisor | 8.1 | If you breach the MUDA. | | | with cause | | | | g. | "Cause" defined – curable defaults | 8.2 | We have the right (subject to state law) to terminate the MUDA upon 30-days' notice if You or Your Controlled Entity failed to comply with the standards and Brand Manual as described in any Franchise Agreement; You fail to obtain required approvals; or any other reason that constitutes good cause under applicable law. | | h. | "Cause" defined – non curable defaults | 8.1 | We have the right (subject to state law) to terminate the MUDA immediately upon receipt of notice if Multi-Unit Developer (You): fail to cure the default of your Development Schedule in the MUDA; cease to engage in development activities; fail to pay uncontested obligations or liabilities, are deemed insolvent; make an assignment for the benefit of creditors; or Your Owners, Operating Principal, Executive Management, Guarantors or Controlled Entity are convicted of, or plead guilty to or no contest to a charge of violating any law or materially violates any federal, state or municipal law, rule, code or regulation applicable to the operations of the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses, breaches any provision, term or condition of this Agreement or any Franchise Agreement or other agreement between Multi-Unit Developer or Controlled Entity and Franchisor or its Affiliates and fails to cure such default within the period | | | Provision | Section in | Summary | | | | | MUDA | | | |----|---------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------|--| | | | | prescribed; any check or EFT issued by the | | | | | | Multi-Unit Developer or Controlled Entity is | | | | | | | | | | | | dishonored; are involved in any act or conduct | | | | | | which | | | | | | materially | | | | | | impairs | | | | | | the | | | | | | goodwill | | | | | | associated with "Southern Steer Butcher," any | | | | | | other of the Marks or with the System that is not | | | | | | cured | | | | | | within | | | | | | 24 | | | | | | hours; | | | | | | engages | | | | | | in | | | | | | any | | | | | | unauthorized business or practice or sells any | | | | | | unauthorized product or service under the | | | | | | Franchisor's Marks, any Franchise Agreement | | | | | | between You and Franchisor is terminated; or | | | | | | Your Owners, Operating Principal, Executive | | | | | | Management, Guarantors or Controlled Entity | | | | | | breach the non-compete and confidentiality | | | | | | covenants in the Franchise Agreement; two or | | | | | | more | | | | | | defaults | | | | | | in | | | | | | a | | | | | | Development | | | | | | Period | | | | | | regardless of whether the defaults are cured; or | | | | | | assign the MUDA or rights therein without | | | | | | complying with Section 7.2. | |
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 MUDA (Multi-Unit Development Agreement) outlines specific cure periods for certain breaches that could lead to termination. For curable defaults, Southern Steer can terminate the MUDA with a 30-day notice if the Multi-Unit Developer fails to comply with the standards and Brand Manual as described in any Franchise Agreement, fails to obtain required approvals, or for any other reason that constitutes good cause under applicable law.
However, the MUDA also specifies certain non-curable defaults that allow Southern Steer to terminate the agreement immediately upon notice. These include failing to cure a default in the Development Schedule, ceasing development activities, failing to pay uncontested obligations, insolvency, or assignment for the benefit of creditors. Additionally, immediate termination can occur if the Multi-Unit Developer's Owners, Operating Principal, Executive Management, Guarantors, or Controlled Entity are convicted of violating any law, materially violate laws applicable to the Southern Steer Businesses, breach any agreement with Southern Steer, or if a check or EFT is dishonored and not cured within 24 hours.
Other non-curable defaults leading to immediate termination involve unauthorized business practices, selling unauthorized products under Southern Steer's Marks, termination of any Franchise Agreement between the developer and Southern Steer, or breaches of non-compete and confidentiality covenants in the Franchise Agreement. Furthermore, two or more defaults within a Development Period, regardless of whether they are cured, or assigning the MUDA without complying with Section 7.2, also constitute non-curable defaults.
Prospective franchisees should carefully review Section 8 of the MUDA to fully understand the circumstances under which Southern Steer can terminate the agreement and the applicable cure periods, as these provisions can significantly impact their rights and obligations.