If a Southern Steer franchisee develops any Improvements, what is the franchisee required to do?
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, if a franchisee or related parties develop any improvements related to the Southern Steer business, they must promptly notify Southern Steer and provide all necessary information without charge. These improvements encompass new intellectual property, inventions, copyrights, trade secrets, concepts, processes, recipes, products, or enhancements to the operation or promotion of the business.
These improvements become the property of Southern Steer, and the franchisee, along with their Designated Manager, Operating Principal, owners, directors, employees, and other beneficial owners, will be required to sign an assignment transferring the rights to these improvements to Southern Steer. This means that Southern Steer has the right to use and potentially allow other franchisees to use these improvements. Conversely, Southern Steer may also allow a franchisee to use improvements derived from other franchisees within the system.
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 innovations developed within the franchise network can be shared and implemented across the system, benefiting all franchisees. However, it also means that franchisees do not retain ownership or exclusive rights to any improvements they develop, which is a crucial consideration for potential franchisees who are innovative and may want to profit from their own creations.