Who benefits from the release agreement in the Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) The Franchisee and each Owner acknowledges that the Franchisee, the Designated Manager, the Owner, the Operating Principal, Executive Management, and certain of the Franchisee's employees (collectively, "Recipients") have or will receive Confidential Information and Trade Secrets from the Franchisor pertaining to the operation of the Southern Steer Business. In consideration for access to and use of the Confidential Information and Trade Secrets, the Franchisee, Owners and Recipients will comply in all respects with the provisions of the Franchise Agreement, including Section 16.1.
- (b) The Franchisee, each Owner, and the Recipients acknowledge that (i) the Confidential Information and Trade Secrets developed and utilized in connection with the operation of the Southern Steer Business are unique and the exclusive property of the Franchisor or its Affiliates, (ii) any unauthorized disclosure or use of the Confidential Information or Trade Secrets would be wrongful and would cause irreparable injury and harm to the Franchisor or its Affiliates, (iii) Franchisor or its Affiliates have expended a great amount of effort and money in obtaining and developing the Confidential Information and Trade Secrets, (iv) the Franchisor or its Affiliates have taken numerous precautions to guard the secrecy of the Confidential Information and Trade Secrets; and (iv) it would be very costly to Franchisor in the event competitors were to acquire or duplicate the Confidential Information and Trade Secrets.
- (c) Nondisclosure. During the Initial Term of the Franchise Agreement, any Interim Perio
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)
Based on the 2025 Southern Steer Franchise Disclosure Document, the release agreement primarily benefits the Franchisor and its Affiliates by confirming the obligations and covenants of the Franchisee and the Owner regarding the prohibited use and disclosure of Confidential Information and Trade Secrets. This agreement ensures that the goodwill and reputation associated with the Southern Steer brand, Marks, Confidential Information, and Trade Secrets remain protected. The agreement is made for good and valuable consideration, with both parties acknowledging its sufficiency.
Specifically, the Franchisee, Designated Manager, Owner, Operating Principal, Executive Management, and certain employees of the Franchisee (collectively, "Recipients") who receive Confidential Information and Trade Secrets from Southern Steer are obligated to comply with the provisions of the Franchise Agreement, including Section 16.1, in consideration for access to and use of this information. This compliance helps to maintain the exclusivity and uniqueness of the Confidential Information and Trade Secrets, preventing unauthorized disclosure or use that could cause irreparable harm to Southern Steer or its Affiliates.
The agreement emphasizes that the Confidential Information and Trade Secrets are the exclusive property of Southern Steer or its Affiliates, and significant effort and money have been invested in their development and protection. The non-disclosure provisions are designed to prevent competitors from acquiring or duplicating this information, which would be costly to Southern Steer. This protection extends throughout the Initial Term of the Franchise Agreement and any Interim Period, ensuring long-term safeguarding of Southern Steer's proprietary assets.