Does Southern Steer designate a protected area and development territory for franchisees?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Before You open Your Southern Steer Business, We, Our Affiliate(s), or Our designee will:
Designate Your Protected Area and Development Territory (if You sign the MUDA). (see Section 1.4 and Attachment A of the Franchise Agreement and Section 2.1 and Attachment A of the MUDA).
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer may designate a protected area and development territory for franchisees. However, this designation is only provided if the franchisee signs the Multi-Unit Development Agreement (MUDA). The specifics of this protected area and development territory are detailed in Section 1.4 and Attachment A of the Franchise Agreement, as well as Section 2.1 and Attachment A of the MUDA.
This means that a franchisee's exclusive territory is not guaranteed with the standard franchise agreement and is contingent upon entering into a separate MUDA. A prospective franchisee should carefully review the terms of the MUDA to understand the scope and limitations of the protected area and development territory, including any conditions for maintaining exclusivity.
It is important for potential Southern Steer franchisees to understand the implications of not having a protected territory under the standard franchise agreement. Without a protected area, franchisees may face direct competition from other Southern Steer outlets, potentially impacting their revenue and market share. Therefore, franchisees should consider whether a MUDA is necessary to secure their business interests and conduct thorough due diligence to assess the market potential and competitive landscape in their desired area.