What right does the Multi-Unit Development Agreement give the Multi-Unit Developer regarding Southern Steer franchises?

2. GRANT OF DEVELOPMENT RIGHTS; DEVELOPMENT TERRITORY.

Development Territory. The Franchisor hereby grants to the Multi-Unit Developer, for the Term of this Agreement, the right to enter into Franchise Agreements with the Franchisor for the development and operation of Southern Steer Businesses in accordance with the development schedule set out in Attachment A ("Development Schedule") within the geographical area

• ("Development Territory") set out in Attachment A. This Agreement will not constitute the sale of a Franchise to the Multi-Unit Developer but rather will give the Multi-Unit Developer the right and obligation to enter into Franchise Agreements with the Franchisor to own and operate franchised Southern Steer Businesses in the Development Territory.
• Non-Exclusive. The Franchisee acknowledges that the rights granted in this Agreement are non-exclusive. However, so long as Franchisee is not in default of this Agreement, the Franchise Agreement for Multi-Unit Developer's first Southern Steer Business ("Initial Franchise Agreement") or any other agreement between Multi-Unit Developer and Franchisor, Franchisor will not operate or license a third party to operate a Southern Steer Business in the Development Territory for the First Period set out in the Development Schedule attached hereto as Attachment A. Upon expiration of the First Period, Franchisor has the right to operate and license third parties to operate Southern Steer Businesses in the Development Territory.
• Reservation of Rights. Notwithstanding Section 2.2, the Franchisor and its Affiliates will have the absolute right to:
  • (a) Subject to the terms and conditions of the Franchise Agreements between Franchisor and Multi-Unit Agreement regarding the Protected Area defined therein, to use, and license the use of, the System or component(s) thereof, for the operation of Southern Steer Businesses inside or outside the Development Area, regardless of proximity to the Development Area;
  • (b) To offer and sell any products and services sold at Southern Steer Businesses under any other names and marks, including through alternative channels of distribution anywhere;
  • (c) To offer and sell, and/or license or franchise others to offer and sell, products and services for Other Businesses and market Other Businesses to anyone, including prospective and existing franchisees anywhere within or outside of the Development Territory;
  • (d) To acquire businesses that are the same as or similar to the Southern Steer Business and operate such businesses anywhere within or outside of the Development Territory and to be acquired by any third party which operates businesses that are the same as or similar to the Southern Steer Business anywhere within or outside of the Development Territory;
  • (e) To market, distribute and sell, on a wholesale or retail basis, food products, prepackaged food, ancillary products and other goods, by direct sale, wholesale, the Internet, mail order, food truck, food trailer, third-party delivery services, other alternative distribution channels or by any other marketing or distribution method that may use the System under the Marks or other marks within or outside of the Development Territory;
  • (f) To implement multi-area marketing programs and delivery service programs which may allow Franchisor or others to solicit or sell to customers anywhere and Franchisor has the right to issue mandatory policies to coordinate such multi-area marketing programs; and
    • (g) To operate Southern Steer Businesses from Non-Traditional Locations anywhere.
• Personal License. The Multi-Unit Developer will not have the right to franchise, sub-franchise, license or sublicense its rights under this Agreement. The Multi-Unit Developer will not have the right to Transfer this Agreement or its rights under this Agreement, except asspecifically provided for in Section 7.2.

3. TERM.

This Agreement will commence on the Effective Date, and, unless sooner terminated in accordance with the terms of this Agreement, this Agreement and all rights granted hereunder will 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 ("Term"). At the end of the Term of this Agreement, the Multi-Unit Developer's development rights with respect to the Development Territory will automatically terminate, and the Multi-Unit Developer will not have the right to renew or extend the Term of this Agreement.

4. FEES.

• Development Fee.

Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)