What constitutes a 'Competitive Activity' in relation to a Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Definition of Competitive Activity. "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;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a 'Competitive Activity' is explicitly defined in Section 16.2(a). It includes offering products and services that are the same as, similar to, or competitive with a Southern Steer Business. This means a franchisee cannot operate a business that directly competes with the core offerings of Southern Steer.
Furthermore, a 'Competitive Activity' involves operating a business or selling goods or providing services that features butcher services, a specialty grocer, marinated meats, or food preparation classes. It also includes businesses that employ or incorporate one or more distinctive elements of the Southern Steer System. This broad definition aims to prevent franchisees from leveraging the Southern Steer brand, system, or offerings in a competing venture, even if it's not an exact replica of a Southern Steer store.
These restrictions apply during the Initial Term and any Interim Period of the franchise agreement, as stated in Section 16.2(b). Moreover, post-term restrictions extend for a period of 24 months after the termination, transfer, assignment, or expiration of the agreement within specific geographic boundaries. These boundaries include the Franchised Location, the Protected Area, and within 50 miles of the outer boundaries of the Protected Area, the Franchised Location, or any other Southern Steer Business. This comprehensive definition and the associated restrictions are designed to protect Southern Steer's market position and proprietary business model.