Does the definition of 'Competitive Business' for a Southern Steer franchise include businesses that sell marinated meats?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.7.
Competitive Business. "Competitive Business" will mean 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 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that sell marinated meats. Specifically, the FDD states that a 'Competitive Business' includes any business that sells goods or provides services that features marinated meats. This definition is relevant both during the term of the franchise agreement and for a period after the agreement terminates.
This definition has significant implications for a prospective franchisee. During the term of the franchise agreement, franchisees are restricted from engaging in any Competitive Activities, which now includes businesses featuring marinated meats, unless expressly authorized by Southern Steer in writing. This restriction ensures that franchisees focus solely on their Southern Steer Business and do not divert resources or attention to competing ventures.
After the termination, transfer, assignment, or expiration of the franchise agreement, the franchisee is still restricted from engaging in any Competitive Activity for a period of 24 months. This post-term covenant not to compete applies within the Franchised Location, the Protected Area, within 50 miles of the outer boundaries of the Protected Area, within 50 miles from the Franchised Location, and within 50 miles of any other Southern Steer Business. Therefore, a former franchisee cannot operate a business featuring marinated meats within these defined areas for two years after leaving the Southern Steer system.