What constitutes a 'Competitive Activity' that a Southern Steer franchisee is restricted from engaging in during the term of the franchise agreement?

According to the 2025 Southern Steer Franchise Disclosure Document, a 'Competitive Activity' is defined as offering products and services that are the same as, similar to, or competitive with a Southern Steer Business. This encompasses a broad range of activities that could potentially draw customers away from the franchised Southern Steer location.

Specifically, a 'Competitive Activity' includes operating a business or selling goods or providing services that features butcher, specialty grocer, marinated meats, or food preparation classes. It also includes any business that employs or incorporates one or more distinctive elements of the Southern Steer System. This definition aims to protect Southern Steer's market position and prevent franchisees from leveraging the brand's established reputation to operate a competing business.

This restriction applies during the Initial Term and any Interim Period of the franchise agreement, and any violation would constitute an unfair method of competition. Franchisees are prohibited from engaging in Competitive Activities unless expressly authorized in writing by Southern Steer. This non-compete clause is designed to ensure that franchisees devote sufficient time and resources to their Southern Steer Business and do not divert business to other ventures.