Is a Southern Steer franchisee required to pay for providing information about Improvements they develop?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You, Your Designated Manager, Operating Principal, owners, directors, employees or other beneficial owners develop any new intellectual property, inventions, copyrights, trade secrets, concepts, processes, recipes, products, or improvements to the operation or promotion or otherwise in relation to Southern Steer Business (collectively, "Improvements") You must promptly notify Us and give Us all necessary information, at no charge. The Improvements will be Our property and You, Your Designated Manager, Operating Principal, owners, directors, employees, or other beneficial owners, will be required to sign an assignment of such Improvements to Us. We may allow other Franchisees to use the Improvements and We may allow You to use Improvements derived from other Franchisees.
Source: Item 14 — ITEM. 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 40–41)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to promptly notify Southern Steer of any Improvements they develop related to the Southern Steer Business. These Improvements include new intellectual property, inventions, copyrights, trade secrets, concepts, processes, recipes, products, or improvements to the operation or promotion.
The FDD states that franchisees must provide Southern Steer with all necessary information regarding these Improvements "at no charge." This means a franchisee will not be directly compensated for the time, effort, or resources they expend in developing and documenting these Improvements. Furthermore, all Improvements become the property of Southern Steer, and franchisees (along with their managers, principals, owners, directors, and employees) will be required to sign an assignment transferring ownership of the Improvements to Southern Steer.
While Southern Steer owns the Improvements, the FDD indicates that Southern Steer may allow other franchisees to use the Improvements and may also allow the developing franchisee to use Improvements derived from other franchisees. This creates a collaborative environment where innovations can be shared across the franchise system, potentially benefiting all franchisees. However, the original developing franchisee does not retain exclusive rights or receive direct compensation beyond the potential indirect benefits of system-wide adoption.