What assurance is given regarding the ability of the Southern Steer franchisee and related individuals to earn a livelihood without violating the restrictions in Section 16?

According to Southern Steer's 2025 Franchise Disclosure Document, Section 16.5(e) acknowledges that the franchisee and individuals subject to the non-compete agreement outlined in Section 16.3 will be able to earn a livelihood without violating the restrictions detailed in the agreement. This acknowledgement is part of a broader agreement where the franchisee recognizes the necessity and reasonableness of the time and geographical limitations to protect Southern Steer and its other franchisees.

This provision aims to assure prospective franchisees that the non-compete obligations are structured in a way that still allows them and related individuals to sustain themselves financially. It suggests that while restrictions exist to protect the brand and its network, these restrictions are not intended to be so onerous as to prevent the franchisee from making a living.

However, it is important for a potential Southern Steer franchisee to carefully review Section 16.3 and related sections to fully understand the scope and limitations of the non-compete agreement. This includes understanding the specific geographical areas and time periods during which the restrictions apply, as well as what activities are considered competitive. Prospective franchisees should seek legal counsel to assess whether these restrictions are reasonable and how they might impact their ability to earn a livelihood should they decide to exit the Southern Steer franchise system.