Can Southern Steer acquire or be acquired by businesses similar to Southern Steer within a franchisee's Protected Area?

According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer retains the right to acquire or be acquired by businesses similar to Southern Steer, even within a franchisee's protected area. Specifically, Southern Steer has the right to acquire businesses that are the same as or similar to the Southern Steer Business and operate such businesses anywhere within or outside of Franchisee's Protected Area and to be acquired by any third party which operates businesses that are the same as or similar to the Southern Steer Business anywhere within or outside Franchisee Protected Area.

This clause means that even if a franchisee has a protected area, Southern Steer can still acquire similar businesses within that area, or be acquired by a third party that operates similar businesses in that area. This could potentially increase competition for the franchisee. It is important to note that the franchisee's protected area is non-exclusive, and Southern Steer reserves several rights, including the right to use and license the System for Southern Steer Businesses inside or outside the franchisee's protected area.

This reservation of rights is a significant consideration for potential franchisees. While a protected area typically offers some level of exclusivity, in the case of Southern Steer, this protection is limited by the franchisor's ability to acquire or be acquired by similar businesses within that area. Prospective franchisees should carefully evaluate the potential impact of this clause on their business and consider discussing it with Southern Steer during their due diligence process.