Does the Southern Steer franchise agreement allow officers, directors, employees, or consultants of a publicly-traded company to own shares in that company if it operates a competitive business?

According to the 2025 Southern Steer Franchise Disclosure Document, the franchise agreement addresses the transfer of ownership interests to entities involved in competitive businesses. Specifically, the agreement states that neither the franchisee nor the owners can transfer the agreement or their ownership interests to any entity that owns, operates, franchises, develops, consults with, manages, is involved in, or controls any competitive business.

This restriction on transfer to competitors is further reinforced by the stipulation that if Southern Steer refuses a transfer due to competitive concerns, the franchisee's only recourse is to have an arbitrator determine whether the proposed transferee is indeed involved in a competitive business. The franchisee is responsible for all costs associated with this arbitration.

While the FDD excerpt does not explicitly address the scenario of officers, directors, employees, or consultants of a publicly-traded company owning shares, the core principle is that no transfer of ownership can occur to any entity involved in a competitive business. A prospective franchisee should seek clarification from Southern Steer regarding how this policy applies to shareholders, especially those affiliated with publicly-traded companies, to ensure full compliance with the franchise agreement.