Does the Southern Steer definition of 'Competitive Business' include businesses that offer food preparation classes?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Southern Steer Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that offer food preparation classes. Specifically, a 'Competitive Business' is defined as any business, other than another Southern Steer Business, that offers products and services that are the same as, similar to, or competitive with a Southern Steer Business, operates in competition with or similar to a Southern Steer Business, or 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.
This definition has significant implications for a prospective Southern Steer franchisee. It means that during the term of the franchise agreement, the franchisee is restricted from owning or operating any business that offers food preparation classes, among other things, within a defined radius of their Southern Steer location. This non-compete clause is designed to protect Southern Steer's market share and brand identity.
It is important for potential franchisees to carefully consider the scope of this definition and how it might impact their future business ventures. Franchisees should seek legal counsel to fully understand the restrictions and obligations outlined in the franchise agreement regarding competitive businesses. Understanding these restrictions is crucial for making an informed decision about investing in a Southern Steer franchise.