Why does the Southern Steer franchise agreement state that the covenants in Section 16 are necessary?

chisee will be responsible for (a) ensuring that each person required to execute a Noncompetition and Nondisclosure Agreement does so; (b) enforcing such Nondisclosure and Noncompetition Agreements, and (c) paying for the legal fees, costs, and expenses associated with such enforcement. The Franchisor has the right to regulate the form of Nondisclosure and Noncompetition Agreement to be executed and to be a third-party beneficiary of or a party to such agreement with independent enforcement rights.

• 16.5. Acknowledgements. The Franchisee and the parties set out in Section 16.3 expressly acknowledge and agree to the following:
  • (a) the time and geographical limitations set forth in Sections 16.2(b) and 16.2(c) are reasonable and necessary to protect the Franchisor and its other franchisees and developers;
  • (b) the covenants in this Section 16 are necessary to give the Franchisor the opportunity to resell and/or develop a new Southern Steer Business at or in the area near the Franchised Location;
  • (c) Franchisee will receive specialized training, marketing and advertising plans, business strategies, Confidential Information, including recipes, cooking and food preparation information, and Trade Secrets from the Franchisor pertaining to the System and the operation of the Southern Steer Business;
  • (d) Franchisee and Franchisee's Southern Steer Business will, during the franchise relationship, become identified with the goodwill associated with the Marks;
  • (e) Franchisee and those individuals subject to this covenant as set out in Section 16.3 will be able to earn a livelihood without violating the foregoing restrictions;

Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)