factual

What is a Southern Steer franchisee required to disclose to Southern Steer regarding changes, improvements, or enhancements to the Southern Steer Business?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

scretion, determines it is necessary to modify or discontinue use of any Marks or to develop additional or substitute marks or trade names, Franchisee will, within 90 days, or such earlier or longer period of time set out in the written notice from Franchisor, take such action directed by Franchisor at Franchisee sole expense, as may be necessary to comply with such modification, discontinuation, addition or substitution.

  • 15.7. Improvements. Franchisee will promptly disclose to Franchisor any changes, improvements, enhancements, advertisements or other marketing materials, inventions, discoveries, creations, patents, copyrights, trademarks, and confidential information relating to Franchisee's Southern Steer Business which Franchisee or any of Franchisee's owners, officers, employees, agents, affiliates, Designated Managers, or independent contractors has made or may make solely, jointly, or commonly with others ("Improvements"). Franchisee will promptly create a written record of the same. Any changes, improvements, or enhancements made to the Southern Steer Business or the Marks, System, Confidential Information, Trade Secrets, Brand Manual, Website and other proprietary information provided to Franchisee by Franchisor made by Franchisee or any of Franchisee's owners, officers, employees, affiliates, agents, Designated Managers or independent contractors or as the result of suggestions or other input from Franchisee or any of Franchisee's owners, officers, employees, affiliates, agents, Designated Managers or independent contractors including without limitation, all copyrightable works, will become part of the Marks, System, Confidential Information, Trade Secrets, Brand Manual, Website and Franchisor's proprietary information owned by Franchisor without any rights of ownership by Franchisee. Franchisee hereby assigns all proprietary rights described in this Section 15.7 to Franchisor without additional consideration. Franchisee will execute such additional assignments or documentation to effectuate the assignment of these rights or as Franchisor deems necessary to enable it, at its expense, to apply for, prosecute, and obtain copyrights, trademarks, patents, or other proprietary rights in the United States and in other countries. Franchisee hereby irrevocably appoints Franchisor as Franchisee attorney-in-fact for the purpose of executing such documents. Franchisor will have the right to make Improvements available for use by all Southern Steer franchisees.

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

What This Means (2025 FDD)

According to the 2025 Southern Steer Franchise Disclosure Document, franchisees are required to promptly disclose any changes, improvements, or enhancements related to their Southern Steer Business. This includes any advancements, modifications, or additions to advertisements, marketing materials, inventions, discoveries, creations, patents, copyrights, trademarks, and confidential information. This obligation extends to changes made by the franchisee, their owners, officers, employees, agents, affiliates, designated managers, or independent contractors, whether made solely, jointly, or in collaboration with others. Franchisees must also promptly create a written record of these improvements.

Southern Steer requires franchisees to disclose these improvements so that the franchisor can maintain and control the brand's standards and intellectual property. Any changes, improvements, or enhancements made to the Southern Steer Business, Marks, System, Confidential Information, Trade Secrets, Brand Manual, Website, and other proprietary information become the property of Southern Steer without the franchisee retaining any ownership rights. The franchisee automatically assigns all proprietary rights to Southern Steer without additional compensation.

This requirement ensures that Southern Steer can incorporate successful innovations from individual franchisees into the broader franchise system, benefiting all franchisees. Southern Steer has the right to make these improvements available for use by all Southern Steer franchisees. The definition of "any changes, improvements, or enhancement" includes methods or materials for advertising or marketing, as well as methods or materials for providing services and products within the Southern Steer Business or other businesses the franchisee may operate.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.