Are there any specific events, other than breach of contract, that could lead to termination of the Southern Steer MUDA?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, there are several events, other than breach of contract, that could lead to the termination of the Multi-Unit Development Agreement (MUDA). Southern Steer has the right to terminate the MUDA immediately if the Multi-Unit Developer fails to meet the development schedule, ceases development activities, fails to pay uncontested obligations, is deemed insolvent, or makes an assignment for the benefit of creditors. Additionally, termination can occur if the developer's owners, operating principal, executive management, guarantors, or controlled entity are convicted of violating any law, materially violates laws applicable to the Southern Steer business, breaches any agreement with Southern Steer, or fails to cure a default.
Further reasons for immediate termination include dishonored checks or EFTs, involvement in conduct that materially impairs the goodwill associated with Southern Steer, engaging in unauthorized business practices, selling unauthorized products or services under Southern Steer's marks, termination of any Franchise Agreement between the developer and Southern Steer, or breaches of non-compete and confidentiality covenants. Two or more defaults in a Development Period, regardless of whether they are cured, or assigning the MUDA without complying with Section 7.2 can also result in termination.
These termination conditions outline significant responsibilities and potential pitfalls for a Southern Steer multi-unit developer. The franchisee must maintain diligent compliance with all legal and financial obligations, adhere strictly to the development schedule, and protect the brand's reputation. Failure to do so can lead to the immediate loss of development rights. Prospective franchisees should carefully evaluate their capacity to meet these requirements and seek legal counsel to fully understand the implications of these termination clauses.