What is a Southern Steer franchisee required to do if they develop any improvements related to the Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a franchisee or any of their owners, officers, employees, agents, affiliates, designated managers, or independent contractors makes any changes, improvements, enhancements, advertisements or other marketing materials, inventions, discoveries, creations, patents, copyrights, trademarks, and confidential information related to the Southern Steer business, they must promptly disclose these "Improvements" to Southern Steer. They are also required to promptly create a written record of these improvements.
These improvements, including all copyrightable works, automatically become the property of Southern Steer. The franchisee essentially assigns all proprietary rights to Southern Steer without receiving any additional compensation. This means that Southern Steer has full ownership and control over any advancements or innovations developed by the franchisee related to the business.
This clause is fairly standard in franchising, as it allows the franchisor to maintain consistency and control over the brand and system. It ensures that any successful innovations can be implemented across the entire franchise network, benefiting all franchisees. However, it also means that franchisees do not retain any ownership or financial interest in the improvements they develop, which is a crucial point to consider before investing in a Southern Steer franchise.