According to the Southern Steer FDD, what is an 'Associate' in relation to the franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.Associate is a member of the Franchisee's management staff, or is an employee of the Franchisee whose job duties will cause Associate to be given access to the Confidential Information and Trade Secrets;
- E. Pursuant to the Franchise Agreement, Franchisee is obligated to, among other things, maintain the confidentiality of the Confidential Information and Trade Secrets and to ensure that all persons associated with Franchisee who receive access to the Confidential Information and Trade Secrets agree not to disclose or use the Confidential Information and Trade Secrets in connection with a Competitive Business or Competitive Activity as defined herein; and
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, an 'Associate' is defined as someone affiliated with the franchisee who has access to Southern Steer's confidential information and trade secrets. This includes members of the franchisee's management staff or any employee whose job duties require them to access this sensitive information.
The FDD emphasizes that franchisees must ensure all Associates agree not to disclose or use Southern Steer's confidential information and trade secrets in any competitive business or activity. This obligation is formalized through an agreement confirming the Associate's commitment to protecting Southern Steer's proprietary information.
This definition is crucial because it extends the responsibility of maintaining confidentiality beyond the franchisee to anyone they employ or manage who has access to Southern Steer's operational and business secrets. Franchisees must, therefore, carefully manage who gains access to this information and ensure they understand and agree to their obligations. This is a common practice in franchising, as franchisors need to protect their intellectual property and business methods.