Are there any requirements for a Southern Steer franchisee to renew or extend the term under the MUDA?

According to Southern Steer's 2025 Franchise Disclosure Document, the MUDA (Multi-Unit Development Agreement) does not have a provision for renewal or extension of the term. The table in Item 17 indicates that the requirements for a franchisee to renew or extend the MUDA are "Not applicable". This means that the agreement does not include an option for franchisees to extend their development rights beyond the initial term.

This lack of a renewal option has important implications for prospective Southern Steer multi-unit developers. It means that their rights to develop new Southern Steer locations within their designated territory will expire at the end of the agreement term. If the franchisee wishes to continue developing Southern Steer locations after the initial term, they would need to negotiate a new MUDA with Southern Steer, which may or may not be granted on favorable terms.

Typically, franchise agreements, including multi-unit development agreements, may offer renewal options if the franchisee meets certain conditions, such as being in good standing, meeting sales targets, and upgrading the store to the latest brand standards. The absence of a renewal option in the Southern Steer MUDA places greater importance on the initial term and the franchisee's ability to execute their development schedule within that timeframe. A prospective franchisee should carefully consider the length of the initial term and the feasibility of meeting the development requirements before entering into the agreement. It would be prudent to discuss with Southern Steer the possibility of future development opportunities beyond the initial MUDA term.