Does the Southern Steer definition of 'Competitive Business' 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 defines a Competitive Business as any business that offers products or services that compete with a Southern Steer Business, operates in competition with a Southern Steer Business, or sells goods or provides services that feature marinated meats.
This definition has significant implications for prospective franchisees. It means that during the term of their franchise agreement, and potentially for a period afterward, franchisees are restricted from owning or operating certain types of businesses that could be seen as competing with Southern Steer. This restriction extends not only to businesses that directly replicate the Southern Steer model but also to those that sell marinated meats, even if they don't offer the full range of products and services found at a Southern Steer location.
For a potential franchisee, it's crucial to fully understand the scope of this competitive business definition and how it might impact their future business ventures. They should carefully consider whether they have any existing business interests or future plans that could be construed as competitive with Southern Steer. It would be prudent to seek legal counsel to fully assess the implications of this clause before entering into a franchise agreement. The franchisee should also inquire about any specific examples or clarifications the franchisor can provide regarding what they consider to be a competitive business.