Can Southern Steer acquire businesses similar to a Southern Steer Business within the Franchisee's Protected Area?

According to Southern Steer's 2025 Franchise Disclosure Document, the franchisor retains the right to acquire businesses similar to a Southern Steer Business, 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. They also have the right 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 reservation of rights means that while a franchisee may have a protected area, Southern Steer could still potentially operate or own similar businesses within that area through acquisition. This could introduce competition within the franchisee's territory, although not necessarily under the Southern Steer brand unless Southern Steer also uses the System or components thereof.

Prospective franchisees should be aware of this clause as it impacts the exclusivity of their protected area. While Southern Steer agrees not to directly franchise or operate a new Southern Steer Business within the protected area (with the exception of Non-Traditional Locations), they can still acquire existing similar businesses, which could affect the franchisee's market share and profitability. Franchisees should carefully consider the potential for such acquisitions when evaluating the franchise opportunity and discuss this point with Southern Steer during their due diligence.