For a Southern Steer franchise, does the definition of 'Competitive Business' include businesses that employ distinctive elements of the Southern Steer System?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.7.
Competitive Business. "Competitive Business" will mean any business, other than another Southern Steer Business that (a) offers products and services that are the same as, similar to or competitive with a Southern Steer Business; (b)operate in competition with or similar to a Southern Steer Business; or (c) sells goods or provides services that features butcher, a specialty grocer, marinated meats, or food preparation classes or that employs or incorporates one or more distinctive elements of the System.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a 'Competitive Business' is defined to include businesses that employ distinctive elements of the Southern Steer system. Specifically, the FDD states that a Competitive Business is any business, other than another Southern Steer Business, that meets certain criteria.
The definition includes businesses that offer products and services that are the same as, similar to, or competitive with a Southern Steer Business. It also encompasses businesses that operate in competition with or similarly to a Southern Steer Business. Critically, the definition extends to businesses that sell goods or provide services featuring a butcher, a specialty grocer, marinated meats, or food preparation classes, or that employ or incorporate one or more distinctive elements of the Southern Steer System.
This definition has significant implications for a franchisee because it restricts the types of businesses they (or certain related parties) can be involved with during and after the franchise term. The restrictions are designed to protect Southern Steer's market position and prevent franchisees from using the franchisor's system and knowledge to benefit a competing business. Franchisees should carefully consider these restrictions and how they might impact their future business ventures.