Can a Southern Steer franchisee make claims against the telephone company for complying with the agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The telephone, directory, social media and other company and all listing agencies will have the right to accept this Agreement as evidence of the exclusive rights of the Franchisor to such telephone numbers, social media accounts and directory listings, and this Agreement will constitute the authority from the Franchisee for the telephone, directory, social media and other company and listing agency to transfer all such telephone numbers, directory, social media and directory listings to the Franchisor.
The Franchisee will not make any claims or commence any action against the telephone, directory, social media and other company and the listing agencies for complying with this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee is prohibited from making claims or starting legal action against telephone, directory, social media, and other companies or listing agencies if they comply with the franchise agreement. This means that Southern Steer has the authority to manage and transfer all telephone numbers, social media accounts, and directory listings associated with the business.
This provision protects the telephone company and other listing services from potential legal disputes arising from their cooperation with Southern Steer in managing and transferring these assets. It ensures that these third-party companies can rely on the franchise agreement as evidence of Southern Steer's rights to the listings and accounts.
For a prospective Southern Steer franchisee, this clause underscores the importance of understanding the franchisor's control over key business assets like phone numbers and online listings. It also highlights the need to resolve any disputes directly with Southern Steer rather than involving third-party service providers, as the franchisee has agreed to release those providers from liability related to their compliance with the franchise agreement.