What activities are considered prohibited Competitive Business or Competitive Activity under the post-term covenant not to compete for a Southern Steer Associate?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) "Competitive Activity" means (i) offering products and services that are the same as, similar to or competitive with a Southern Steer Business; (ii) operating a business or selling goods or providing services that features butcher, specialty grocer, marinated meats, or food preparation classes or that employs or incorporates one or more distinctive elements of the System; (iii) providing services of the type provided by Franchisor and/or its Affiliates where those services are provided in relation to businesses of the type described in Sections (i)-(ii); (iv) Ownership, whether directly or indirectly, and whether beneficially or of record of any capital stock, partnership interest, membership interest or any other interest in a business or entity that engages in the activities described in Sections (i) - (ii); (v) participation, either directly or indirectly, in the management or operation of a business as a partner, investor, shareholder, owner, director, officer, employee, principal, agent, advisor, manager, franchisee, licensee, contractor or consultant or in any other capacity of any entity, business or person that engages in the activities described in Sections (i) - (ii); (vi) Franchise, license, conduct or be connected with or assist any person, entity or business to franchise, license, conduct or be connected with the activities described in Sections (i) - (ii); and (vii) divert or attempt to divert, directly or indirectly, any business related to, or any customer or account of, Franchisee's Southern Steer Business, Franchisor, Affiliates, any Other Business operated by Franchisor its franchisees, licensees or Affiliates, or any other business then being offered or operated by Franchisor or its Affiliate(s) in the Protected Area.
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 Franchise Disclosure Document, a Competitive Activity for an Associate includes several actions related to businesses that compete with Southern Steer. These prohibited activities include offering similar products or services, operating a business that features butcher services, specialty groceries, marinated meats, or food preparation classes, or using distinctive elements of the Southern Steer system.
Additionally, Competitive Activity encompasses owning any interest in a business that engages in these competitive activities, whether directly or indirectly. It also includes participating in the management or operation of such a business in any capacity, such as a partner, investor, shareholder, employee, or consultant. Furthermore, an Associate cannot franchise, license, conduct, or assist any entity in conducting these activities.
Finally, the definition extends to actions that could divert business from a Southern Steer franchise. This includes attempting to redirect customers or business away from the franchisee's Southern Steer Business, Southern Steer itself, its affiliates, or any other business operated by Southern Steer or its franchisees, licensees, or affiliates within the protected area. These restrictions are in place for a period of 24 months after the termination or expiration of the Associate's employment or affiliation with the Franchisee.