Where in the Southern Steer MUDA are territorial development and sales quotas defined?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ry, 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.
Before You sign the MUDA, a description of the Development Territory will be included in the MUDA. The size of the Development Territory and the number of Southern Steer Businesses You will develop within the Development Territory are determined by different factors, including the population of the Development Territory, market potential, demographics, economic conditions, business climate, competition, Your financial resources and other relevant factors. You must meet the Development Schedule in the MUDA or You will lose Your right to continue to develop Southern Steer Businesses in the Development Territory. The MUDA does not grant any options, rights of first refusal or similar rights to You for the acquisition of additional development rights in Your Development Territory or contiguous areas.
Your Protected Area and Development Territory are not exclusive territories. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets We own, or from other channels of distribution or competitive brands that We control or from Non-Traditional Locations.
Reservation of Rights
The following rights are reserved to Us or Our Affiliates:
- (1) develop Southern Steer Businesses outside of Your Protected Area or Development Territory (if You signed the MUDA);
- (2) develop other specialty butcher and grocery business concepts under other brand names, even if the locations for the other specialty butcher and grocery business concepts are within Your Protected Area or Development Territory (if You signed the MUDA);
Source: Item 9 — ITEM. 9 FRANCHISEE'S OBLIGATIONS (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the specifics of the Development Territory and the number of Southern Steer businesses a franchisee is expected to develop are detailed in the Multi-Unit Development Agreement (MUDA) itself. Item 12 indicates that a description of the Development Territory will be included in the MUDA before signing. The size and number of businesses to be developed are based on factors such as population, market potential, demographics, economic conditions, competition, and the franchisee's financial resources. The Development Schedule, outlining the timeline for opening the first Southern Steer Business, is attached as Attachment A to the MUDA.
To maintain development rights, franchisees must adhere to the Development Schedule specified in the MUDA. Failure to meet this schedule can result in the loss of the right to further develop Southern Steer businesses within the Development Territory. However, the FDD also states that the rights granted in the MUDA are non-exclusive. Even with a MUDA, Southern Steer retains significant rights, including the right to develop businesses outside the Development Territory, develop other concepts under different brand names (even within the Development Territory), and sell products through alternative channels.
Minimum Gross Sales requirements are mentioned in Item 12, noting that failure to meet these sales targets can lead to required additional training, increased local advertising, changes to the Protected Area, the establishment of other Southern Steer businesses in the Protected Area, or even termination of the Franchise Agreement. The MUDA grants the right to develop and operate multiple Southern Steer Businesses within the Development Territory, and as long as the franchisee complies with the MUDA and the First Franchise Agreement, Southern Steer will not operate or franchise other businesses in the Development Territory during the initial development period, except in Non-Traditional Locations or via authorized delivery services. The Development Schedule is attached as Attachment A to the MUDA.