Can Southern Steer develop Southern Steer Businesses outside of my Protected Area or Development Territory?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The following rights are reserved to Us or Our Affiliates:
- (1) develop Southern Steer Businesses outside of Your Protected Area or Development Territory (if You signed the MUDA);
- (2) develop other specialty butcher and grocery business concepts under other brand names, even if the locations for the other specialty butcher and grocery business concepts are within Your Protected Area or Development Territory (if You signed the MUDA);
- (3) market, distribute and sell, on a wholesale or retail basis, food products, prepackaged food, ancillary products and other goods under any of the Marks or different trademarks, by direct sale, wholesale, the Internet, mail order, food truck, food trailer, third party delivery services, other alternative distribution channels or by any other marketing or distribution method even if the sales are made to customers, distributors or retailers who are located in Your Protected Area or Development Territory (if You signed the MUDA). We do not provide compensation to You for providing such items in Your Protected Area or Development Territory (if You signed the MUDA) through alternative distribution channels (except as part of a delivery service program);
- (4) sell any products and services sold at Southern Steer Businesses under any other names and marks, including through alternative channels of distribution;
- (5) implement multi-area marketing programs which may allow Us or others to solicit or sell to customers anywhere. We reserve the right to issue mandatory policies to coordinate such multi-area marketing programs;
- (6) operate Southern Steer Businesses from Non-Traditional Locations anywhere; and
- (7) to acquire businesses that are the same as or similar to the Southern Steer Business and operate such businesses anywhere within or outside Your Protected Area or Development Territory (if You signed the MUDA) and to be acquired by any third party which operates businesses that are the same as or similar to the Southern Steer Business anywhere within or outside of the Protected Area or Development Territory (if You signed the MUDA).
Source: Item 12 — ITEM. 12 TERRITORY (FDD pages 35–38)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer reserves the right to develop Southern Steer Businesses outside of a franchisee's Protected Area or Development Territory. This means that even if a franchisee has a designated area, Southern Steer can still establish new locations outside of it. Southern Steer also retains the right to develop other specialty butcher and grocery business concepts under different brand names, even within a franchisee's Protected Area or Development Territory. This could potentially lead to direct competition from businesses owned or controlled by the franchisor.
Southern Steer also reserves the right to market, distribute, and sell food products and ancillary goods through various channels, including wholesale, internet, mail order, food trucks, and third-party delivery services, even within a franchisee's Protected Area or Development Territory. Franchisees will not be compensated for these sales made through alternative distribution channels, except as part of a delivery service program. This reservation of rights extends to selling products and services under different names and marks through alternative distribution channels and implementing multi-area marketing programs that may solicit customers anywhere.
Southern Steer can operate Southern Steer Businesses from Non-Traditional Locations, such as transportation facilities, sporting arenas, and farmers markets, anywhere. They also have the right to acquire similar businesses and operate them within or outside a franchisee's Protected Area or Development Territory. These extensive rights retained by Southern Steer highlight the non-exclusive nature of the territories granted to franchisees and the potential for competition from the franchisor itself or other channels it controls.