Can the Intellectual Property License Agreement for Southern Steer be modified or terminated unilaterally?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Mark(s) is owned by Our Affiliate, Southern Steer Butcher, LLC. We entered into an Intellectual Property License Agreement with Southern Steer Butcher, LLC licensing the use of the Mark(s) and System to Us ("License Agreement"). Under the License Agreement, Southern Steer Butcher, LLC granted Us the non-exclusive right to use and license the Mark(s) for the purpose of franchising Southern Steer Businesses. The term of the License Agreement is 30 years with automatic one-year renewal periods, and the License Agreement cannot be modified or terminated except by the mutual agreement of the parties. Other than the License Agreement, there are no agreements currently in effect which significantly limit Our rights to use or license the use of the Mark(s).
Source: Item 13 — ITEM. 13 TRADEMARKS (FDD pages 38–39)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Intellectual Property License Agreement between Southern Steer and Southern Steer Butcher, LLC, which grants Southern Steer the right to use and license the brand's trademarks, has specific terms regarding modification and termination. The License Agreement has an initial term of 30 years with automatic one-year renewal periods.
The critical point for a prospective Southern Steer franchisee is that this License Agreement cannot be modified or terminated by Southern Steer alone. Instead, any changes or termination requires the mutual agreement of both Southern Steer and Southern Steer Butcher, LLC. This provides a level of stability and assurance that the brand and system Southern Steer franchisees are investing in will remain in place, as changes to the core intellectual property rights require consensus between the two parties.
This arrangement protects franchisees because Southern Steer cannot unilaterally alter or abandon the trademarks and operating system licensed to them without the consent of Southern Steer Butcher, LLC. However, it also means that if disputes arise between Southern Steer and Southern Steer Butcher, LLC, changes that franchisees might desire or that could benefit the system might be difficult to implement if either party withholds consent. Prospective franchisees should consider this interdependency and the potential impact of disagreements between the two entities when evaluating the franchise opportunity.