Is a Southern Steer Franchisee required to be in good standing to maintain their Protected Area?

According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee's Protected Area can be affected by their performance. Specifically, if a Southern Steer franchisee fails to meet the Minimum Gross Revenues for any Year, Southern Steer has the option to decrease or modify the franchisee's Protected Area. This means that maintaining a certain level of sales is directly tied to retaining the original scope of the Protected Area granted in the franchise agreement.

This condition creates a direct incentive for Southern Steer franchisees to actively manage and promote their businesses to meet or exceed the minimum revenue thresholds. Failure to do so could result in a smaller, less lucrative territory, potentially impacting the franchisee's long-term profitability and market presence. The franchisor also has the option to operate or license others to operate Southern Steer Businesses in the Protected Area.

Beyond revenue, the franchise agreement emphasizes compliance with system standards and operational requirements. While not directly stated as a condition for maintaining the Protected Area, failure to adhere to these standards could lead to other penalties or termination of the agreement, which would indirectly affect the franchisee's ability to operate within their Protected Area. Prospective franchisees should carefully review the specific Minimum Gross Revenues requirements and other performance metrics outlined in their franchise agreement to fully understand the conditions for maintaining their Protected Area.