factual

Under what conditions can the Southern Steer franchisor immediately terminate the Multi-Unit Development Agreement without prior notice?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (g) the Multi-Unit Developer, its Owners, Operating Principal, Guarantors or any Controlled Entity 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, including a violation of any health department rules or regulations relating to any food safety standards that would in any way endanger the health or well-being of any of the customers or guests of the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses;

  • (h) the Multi-Unit Developer, its Owners, Operating Principal, Guarantors or a Controlled Entity 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 prescribed in such Franchise Agreement or other agreement;

  • (i) any check or EFT issued by the Multi-Unit Developer or Controlled Entity is dishonored because of insufficient funds (except where the check is dishonored because of bank error or an error in bookkeeping or accounting) or closed accounts more than three times during the Term of this Agreement;

  • (j) the Multi-Unit Developer, its Owners, Operating Principal, Guarantors or any Controlled Entity 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 and the Multi-Unit Developer, its Owners, Operating Principal, Guarantors or any Controlled Entity fails to correct the breach within 24 hours after receipt of written notice of the breach from the Franchisor;

  • (k) the Multi-Unit Developer or any Controlled Entity engages in any unauthorized business or practice or sells any unauthorized product or service under the Franchisor's Marks or under a name or mark which is confusingly similar to the Franchisor's Marks;

  • (l) any Franchise Agreement between the Multi-Unit Developer (or a Controlled Entity) and the Franchisor is terminated by either party for any reason;

  • (m) the Multi-Unit Developer, its Owners, Operating Principal, Guarantors, Controlled Entity or any individual breaches the non-compete and confidentiality covenants set out in the Franchise Agreement or the Non-Competition and Non-Disclosure Agreement;

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)

What This Means (2025 FDD)

According to the 2025 Southern Steer Franchise Disclosure Document, the franchisor can immediately terminate the Multi-Unit Development Agreement without prior notice under several conditions. These include if the Multi-Unit Developer, its Owners, Operating Principal, Guarantors, or any Controlled Entity materially violates any federal, state, or municipal law, rule, code, or regulation applicable to the operations of the Southern Steer Businesses, especially concerning health and food safety standards that endanger customers.

Additionally, immediate termination is possible if the Multi-Unit Developer, its Owners, Operating Principal, Guarantors, or a Controlled Entity breaches any term of the Multi-Unit Development Agreement, any Franchise Agreement, or any other agreement with Southern Steer or its affiliates, and fails to cure the breach within the period specified in those agreements. Other causes for immediate termination involve financial issues, such as having a check or EFT dishonored due to insufficient funds or closed accounts more than three times during the agreement's term, or engaging in any act that materially impairs the goodwill associated with the Southern Steer brand and failing to correct it within 24 hours of notice.

Further reasons for immediate termination without notice include engaging in unauthorized business practices or selling unauthorized products under Southern Steer's marks, termination of any Franchise Agreement between the Multi-Unit Developer (or a Controlled Entity) and Southern Steer for any reason, breaching non-compete and confidentiality covenants, or transferring the agreement or development rights without proper compliance. These stipulations highlight the critical importance of adhering to legal and brand standards, maintaining financial responsibility, and upholding contractual obligations to avoid immediate termination of the Multi-Unit Development Agreement with Southern Steer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.