According to the Southern Steer agreement, who is the employer of the Associate?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Associate acknowledges that Associate will receive from the Franchisee Confidential Information and Trade Secrets pertaining to the operation of the Southern Steer Business.
- (c) During the term of Associate's employment or affiliation with Franchisee and for a period of five years after the expiration or termination of such employment or affiliation (unless such information is a Trade Secret in which case the requirements will remain in place for as long as such information constitutes a trade secret), Associate will not at any time, reveal, communicate, sell, use, employ, copy, reverse engineer, imitate, lecture upon, rewrite, reproduce, disseminate, publish, disclose, or divulge, directly or indirectly, for its own benefit or otherwise, the Confidential Information or Trade Secrets, for Associate's own benefit or otherwise. (a) In-Term Covenant Not to Compete. During the term of Associate's employment or affiliation with Franchisee Associate will not, on his/her/its own account or as an employee, principal, agent, franchisee, independent contractor, consultant, affiliate, licensee, partner, officer, director, shareholder, member, manager, or owner of any other person or Entity, directly or indirectly, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any person or Entity engage in any Competitive Activity or Competitive Business, except with the prior written consent of the Franchisor, which consent may be withheld in Franchisor's sole discretion.
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 FDD, the Associate is employed or affiliated with the Franchisee. The document specifies that the Associate acknowledges receiving confidential information and trade secrets from the Franchisee related to the Southern Steer business.
Furthermore, the Associate's employment or affiliation with the Franchisee carries certain obligations, including non-disclosure of confidential information during and for a period after their employment. The Associate also agrees to a covenant not to compete during their employment or affiliation with the Franchisee.
These stipulations are designed to protect Southern Steer's confidential information, trade secrets, and overall business interests by preventing employees of the franchisee from using proprietary knowledge gained during their employment to engage in competitive activities, either during or after their time with the franchisee.