What is considered a 'Competitive Business' or 'Competitive Activity' in relation to a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ime to time by Franchisor.
- (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.
- (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 FDD, a 'Competitive Business' is any business, excluding another Southern Steer franchise, 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. This also includes businesses that incorporate distinctive elements of the Southern Steer system.
'Competitive Activity' is defined more broadly. It includes offering products/services that are the same as, similar to, or competitive with a Southern Steer business. It also encompasses operating a business that features butcher services, specialty groceries, marinated meats, or food preparation classes, or that uses elements of the Southern Steer system. Providing services similar to those offered by Southern Steer in relation to these types of businesses also falls under this definition.
Furthermore, 'Competitive Activity' includes owning any interest in a business engaging in the aforementioned activities, participating in the management or operation of such a business in any capacity, and assisting any person or entity in franchising, licensing, or conducting these activities. It also includes diverting or attempting to divert business from a Southern Steer franchise, the franchisor, or its affiliates. These definitions are important because the franchise agreement contains in-term and post-term covenants not to compete, restricting franchisees from engaging in such activities.