Is another Southern Steer Business considered a 'Competitive Business'?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) "Competitive Business" means any business, other than another Southern Steer Business that (a) offers products and services that are the same as, similar to or competitive with a Southern Steer Business; (b)operate in competition with or similar to a Southern Steer Business; or (c) sells goods or provides services that features butcher, a specialty grocer, marinated meats, or food preparation classes or that employs or incorporates one or more distinctive elements of the System.
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 Business' is defined as any business that offers similar products or services, operates in competition with, or sells goods/services featuring butcher items, specialty groceries, marinated meats, or food preparation classes. However, the document explicitly states that another Southern Steer Business is NOT considered a 'Competitive Business'.
This distinction is important for prospective franchisees because it clarifies the scope of the non-compete clauses within the franchise agreement. The non-compete clauses restrict franchisees from engaging in 'Competitive Activities' or owning/operating 'Competitive Businesses' during and after the term of their franchise agreement. Since another Southern Steer Business is not considered a 'Competitive Business', franchisees are not restricted from owning or operating another Southern Steer franchise, subject to the franchisor's approval and any multi-unit development agreements.
The FDD also defines 'Competitive Activity' more broadly, including offering similar products/services, operating similar businesses, or participating in the management/operation of such businesses. This definition ensures that franchisees cannot circumvent the non-compete restrictions by engaging in similar businesses under a different name or business structure. The non-compete clauses apply during the franchise term and for a period of 24 months after termination, transfer, assignment, or expiration of the agreement, within specific geographic areas including the franchised location, protected area, and within 50 miles of other Southern Steer Businesses.
Southern Steer includes these restrictions to protect its confidential information, trade secrets, and the goodwill of the brand. The FDD emphasizes that franchisees will have access to confidential information and trade secrets, including the Brand Manual, making these limitations necessary to prevent unauthorized duplication of the Southern Steer system. Franchisees acknowledge that violating these non-compete provisions would cause irreparable harm to Southern Steer, justifying injunctive relief in addition to monetary damages.