Is a Southern Steer franchisee allowed to develop Southern Steer businesses outside of their Protected Area or Development Territory?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described below, You may not conduct business at any Site other than Your Southern Steer Business, including without limitation, the use of any other channels of distribution, such as the Internet, Non-Traditional Locations, delivery, wholesale distribution, restaurants, grocery stores, catalog sales or direct marketing, to make sales outside of the Protected Area. We may grant You the right to offer products from Your Southern Steer Business using a food trailer located at a Non-Traditional Location if (1) You are not in default of the Franchise Agreement or any other agreement with Us or any Affiliate of Ours; and (2) You receive Our prior written approval. Any sales made via a food trailer will be included in Gross Revenue. We may enter into a fulfillment agreement with a third-party service provider for third-party delivery (such as Uber Eats or DoorDash and Grubhub) as part of a systemwide delivery program. We reserve the right to issue mandatory policies to coordinate such delivery programs.
Minimum Sales
Source: Item 12 — ITEM. 12 TERRITORY (FDD pages 35–38)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees are generally restricted from conducting business outside of their Protected Area. The FDD specifies that franchisees may not use other channels of distribution, such as the Internet, non-traditional locations, delivery, wholesale distribution, restaurants, grocery stores, catalog sales, or direct marketing, to make sales outside of their Protected Area.
However, Southern Steer may grant a franchisee the right to operate a food trailer at a non-traditional location, provided the franchisee is not in default of any agreements and receives prior written approval from Southern Steer. Sales made through such a food trailer will be included in the franchisee's gross revenue.
Furthermore, Southern Steer retains the right to develop Southern Steer businesses outside of a franchisee's Protected Area or Development Territory. They can also acquire similar businesses and operate them anywhere, including within or outside a franchisee's territory. This means that while franchisees are generally limited to their assigned territory, Southern Steer has the flexibility to expand its brand's presence as it sees fit, potentially creating competition for existing franchisees.