What violations of law could result in immediate termination of the Southern Steer Multi-Unit Development Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ssignment for the benefit of creditors or enters into any similar arrangement for the disposition of its assets for the benefit of creditors;
- (f) the Multi-Unit Developer or any of its 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, and such conviction or plea could have a material adverse effect on the Multi-Unit Developer 's right or ability to operate the Southern Steer Businesses, perform its obligations under this Agreement or could have a material adverse effect on the Marks, goodwill, reputation or System;
- (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 En
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 Southern Steer's 2025 Franchise Disclosure Document, a Multi-Unit Developer can face immediate termination of their agreement if they, their Owners, Operating Principal, Guarantors, or any Controlled Entity are convicted of, or plead guilty or no contest to, violating any law. This is contingent on the conviction or plea having a material adverse effect on the Multi-Unit Developer's ability to operate the Southern Steer Businesses, fulfill their obligations under the agreement, or negatively impacting the Marks, goodwill, reputation, or System.
Additionally, immediate termination can occur 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. This includes violations of health department rules or regulations related to food safety standards that could endanger the health or well-being of customers or guests.
These stipulations highlight the importance of adhering to all applicable laws and regulations for Southern Steer franchisees. Any legal issues that could negatively impact the brand or the safety of customers could result in the immediate loss of the franchise rights. Prospective franchisees should carefully review all legal requirements and ensure they have systems in place to maintain compliance.