Does the Southern Steer definition of 'Competitive Business' include businesses that feature a specialty grocer?
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 Southern Steer's 2025 Franchise Disclosure Document, the definition of "Competitive Activity" includes businesses that feature a specialty grocer. Specifically, the FDD states that operating a business that features a specialty grocer is considered a competitive activity. This definition is relevant to the in-term and post-term covenants not to compete, which restrict franchisees from engaging in competitive activities during the franchise term and for a period after the agreement terminates.
This non-compete clause means that as a Southern Steer franchisee, you are restricted from operating or being involved with a specialty grocer, among other businesses, both during your franchise term and for a specified period afterward. The restrictions apply within certain geographic boundaries, including the franchised location, the protected area, and within 50 miles of these locations or any other Southern Steer Business.
For a prospective franchisee, this clause is important because it limits your ability to operate other businesses, especially those similar to Southern Steer, both during and after the franchise agreement. It is essential to understand the scope and duration of these restrictions before investing in a Southern Steer franchise to avoid potential conflicts of interest or legal issues.