Is a Southern Steer franchisee allowed to engage in other businesses?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Interests of Franchisee. If the Franchisee is an entity, it will be dedicated solely to the operation of the Southern Steer Business and will not hold any interest in, operate, or manage any other businesses of any kind without the prior written approval of the Franchisor. At the time of execution of this Agreement, Franchisee will provide, and at any later time at Franchisor's request, Franchisee or Franchisee's Operating Principal will promptly provide Franchisor with satisfactory proof of Franchisee's ownership. Franchisee will allow no changes in the ownership structure of Franchisee's Southern Steer Business without Franchisor's prior written consent.
(j) Operation of Other Businesses.
The Franchisee will use the Franchised Location solely for the operation of a Southern Steer Business and will not directly or indirectly operate or engage in any other business or activity from the Franchised Location.
The Franchisee will not participate in any dual branding program, or in any other program, promotion or business pursuant to which another trademark, service mark, trade name, or commercial symbol is used in connection with the Franchisee's Southern Steer Business or at the Franchised Location.
ITEM. 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You, Your Operating Principal (if You are a corporation, limited liability company, partnership, or other entity) or Your Designated Manager must, personally participate in the dayto-day management of Your Southern Steer Business. Your Designated Manager need not own an equity interest in the Southern Steer Business; however, your Operating Principal will own an equity interest. The Designated Manager must be approved by Us. We also recommend that You hire an assistant manager to assist in the day-to-day management of Your Southern Steer Business.
You or Your Operating Principal and Your Designated Manager must satisfactorily complete Our Initial Training Program, devote his/her best efforts to the operation of Your Southern Steer Business and not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise conflicts with Your obligations under the Franchise Agreement.
Source: Item 15 — ITEM. 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the ability of a franchisee to engage in other businesses is restricted. If the franchisee is an entity, it must be solely dedicated to the operation of the Southern Steer Business, and it cannot hold any interest in, operate, or manage other businesses without prior written approval from Southern Steer.
Additionally, the franchisee must use the franchised location solely for the operation of the Southern Steer business. They are prohibited from operating or engaging in any other business or activity directly or indirectly from that location. Dual branding or any program that uses another trademark, service mark, trade name, or commercial symbol in connection with the Southern Steer business or at the franchised location is also not allowed.
Furthermore, the franchisee, their Operating Principal, or Designated Manager must personally participate in the day-to-day management of the Southern Steer business. They must devote their best efforts to the operation and not engage in any other business or activity that demands substantial management responsibility or time commitments, or that otherwise conflicts with their obligations under the Franchise Agreement. This suggests that while not explicitly forbidden from all outside activities, any such activities must not interfere with the franchisee's commitment to managing the Southern Steer business.