Under what section of the MUDA can the Southern Steer franchisor terminate the agreement with cause?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Addendum for state law modifications). |#### THE MUDA RELATIONSHIP
This table lists certain important provisions of the Multi Unit Development Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Section in MUDA | Summary | ||
|---|---|---|---|---|
| a. | Length of agreement term | 3 | Begin on the Effective Date and 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 | ||||
| b. | Renewal or extension of the | Not applicable | ||
| term | ||||
| c. | Requirements for You to | Not applicable | ||
| renew or extend | ||||
| d. | Termination by You | Not applicable | ||
| e. | Termination by franchisor | Not applicable | ||
| without cause | ||||
| f. | Termination by franchisor | 8.1 | If you breach the MUDA. | |
| with cause | ||||
| g. | "Cause" defined – curable defaults | 8.2 | We have the right (subject to state law) to terminate the MUDA upon 30-days' notice if You or Your Controlled Entity failed to comply with the standards and Brand Manual as described in any Franchise Agreement; You fail to obtain required approvals; or any other reason that constitutes good cause under applicable law. | |
| 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; |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchisor can terminate the Multi-Unit Development Agreement (MUDA) with cause under Section 8.1. This section applies if the franchisee breaches the MUDA. Additionally, Section 8.2 outlines 'cause' as curable defaults, where Southern Steer has the right to terminate the MUDA with 30 days' notice if the franchisee fails to comply with the standards and Brand Manual as described in any Franchise Agreement, fails to obtain required approvals, or for any other reason that constitutes good cause under applicable law.
Section 8.1 also defines 'cause' as non-curable defaults, allowing Southern Steer to terminate the MUDA immediately upon notice if the franchisee fails to cure a default in their Development Schedule, ceases development activities, fails to pay uncontested obligations, is deemed insolvent, makes an assignment for the benefit of creditors, or if their Owners, Operating Principal, Executive Management, Guarantors, or Controlled Entity are convicted of violating any law or materially violates any applicable law related to the Southern Steer Businesses. This also applies if the franchisee breaches any provision of the MUDA, any Franchise Agreement, or any other agreement with Southern Steer and fails to cure the default within the prescribed period.
Furthermore, immediate termination is possible if any check or EFT issued by the franchisee is dishonored, if they engage in conduct that materially impairs the goodwill associated with the Southern Steer brand, if they engage in any unauthorized business practices or sell unauthorized products under Southern Steer's Marks, if any Franchise Agreement between the franchisee and Southern Steer is terminated, if the franchisee's Owners, Operating Principal, Executive Management, Guarantors, or Controlled Entity breach non-compete and confidentiality covenants, if there are two or more defaults in a Development Period regardless of whether the defaults are cured, or if the franchisee assigns the MUDA without complying with Section 7.2.