Who is included in the definition of "Recipients" who must maintain the confidentiality of Southern Steer's Confidential Information and Trade Secrets?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) The Franchisee and each Owner acknowledges that the Franchisee, the Designated Manager, the Owner, the Operating Principal, Executive Management, and certain of the Franchisee's employees (collectively, "Recipients") have or will receive Confidential Information and Trade Secrets from the Franchisor pertaining to the operation of the Southern Steer Business. In consideration for access to and use of the Confidential Information and Trade Secrets, the Franchisee, Owners and Recipients will comply in all respects with the provisions of the Franchise Agreement, including Section 16.1.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the term "Recipients" includes several individuals who have access to the franchisor's confidential information and trade secrets. These individuals are bound by the non-disclosure agreements outlined in the franchise agreement.
Specifically, the definition of "Recipients" encompasses the franchisee, each owner, the designated manager, the operating principal, executive management, and certain of the franchisee's employees. This broad definition ensures that all individuals with access to sensitive information regarding the Southern Steer business are obligated to maintain its confidentiality.
This requirement is typical in franchising, as protecting trade secrets and confidential information is crucial for maintaining a brand's competitive advantage. Prospective Southern Steer franchisees should understand that they, along with their owners, managers, and key employees, will be legally responsible for safeguarding the franchisor's proprietary information.