How does Southern Steer designate the franchisee's Protected Area?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided to the contrary in this Section, the Franchisee will receive the nonexclusive "Protected Area" defined in the Attachment A attached to this Agreement.
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 specific details of a franchisee's protected area are outlined in Attachment A of the Franchise Agreement. This attachment is where the nonexclusive Protected Area for the franchisee is defined.
Southern Steer retains significant rights, even within a franchisee's protected area. The franchisor can use and license the Southern Steer system for businesses inside or outside the franchisee's protected area, regardless of proximity. They can also sell Southern Steer products and services under different names through alternative channels and market other businesses to anyone, including existing franchisees, within or outside the protected area. Furthermore, Southern Steer can acquire and operate similar businesses or be acquired by entities operating similar businesses, irrespective of the franchisee's protected area.
Southern Steer also reserves the right to engage in various distribution methods, including wholesale, internet sales, food trucks, and third-party delivery services, within or outside the protected area. They can implement multi-area marketing and delivery programs that may solicit customers anywhere. The franchisor can operate Southern Steer businesses from non-traditional locations anywhere, impacting the franchisee's market. These reservations significantly limit the exclusivity a franchisee might expect from a protected area, making it crucial to understand the scope of these exceptions.
It is important for a prospective Southern Steer franchisee to carefully review Attachment A and fully understand the implications of the protected area definition, as well as the franchisor's reserved rights. This understanding is crucial for assessing the potential market and competitive landscape for their specific location. Franchisees should discuss these aspects with the franchisor to gain clarity on how these provisions might affect their business operations and revenue potential.