Is the license granted to the franchisee for a Southern Steer business exclusive?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the license granted hereunder, including in Section 1.1 is non-exclusive and, notwithstanding anything contained in this Agreement to the contrary, the following rights are reserved to Franchisor and its Affiliates and their successors and assigns:
(a) Except as provided for in Section 1.4, to use, and license the use of, the System or component(s) thereof, for the operation of Southern Steer Businesses inside or outside Franchisee's Protected Area, regardless of proximity to the Protected Area and the Franchised Location;
(b) To offer and sell any products and services sold at Southern Steer Businesses under any other names and marks, including through alternative channels of distribution;
(c) To offer and sell, and/or license or franchise others to offer and sell, products and services for Other Businesses and market Other Businesses to anyone, including prospective and existing Franchisees anywhere within or outside of Franchisee's Protected Area;
(d) To acquire businesses that are the same as or similar to the Southern Steer Business and operate such businesses anywhere within or outside of Franchisee's Protected Area and to be acquired by any third party which operates businesses that are the same as or similar to the Southern Steer Business anywhere within or outside of Franchisee Protected Area;
(e) To market, distribute and sell, on a wholesale or retail basis, food products, prepackaged food, ancillary products and other goods, by direct sale, wholesale, the Internet, mail order, food truck, food trailer, third-party delivery services, other alternative distribution channels or by any other marketing or distribution method that may use the System under the Marks or other trademarks within or outside of Franchisee's Protected Area;
(f) To implement multi-area marketing programs and delivery service programs which may allow Franchisor or others to solicit or sell to customers anywhere and Franchisor has the right to issue mandatory policies to coordinate such multi-area marketing programs and delivery service programs; and
(g) To operate Southern Steer Businesses from Non-Traditional Locations anywhere.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the license granted to a franchisee is non-exclusive. Specifically, while a franchisee is granted a license to operate within a Protected Area, Southern Steer retains significant rights.
Southern Steer reserves the right to use and license the System for Southern Steer businesses both inside and outside the franchisee's Protected Area, regardless of proximity. This means Southern Steer can establish other locations, including those nearby, that could compete with the franchisee's business.
Southern Steer also retains the right to sell products and services under different names and marks through alternative distribution channels. They can offer and sell products and services for other businesses and market these to anyone, including existing or prospective franchisees, regardless of location. Furthermore, Southern Steer can acquire similar businesses and operate them anywhere, even within a franchisee's Protected Area. They can also market and sell food products through various channels like the internet, mail order, food trucks, or third-party delivery services, within or outside the Protected Area.
Southern Steer can implement multi-area marketing and delivery service programs that may solicit or sell to customers anywhere. They also have the right to operate Southern Steer businesses from Non-Traditional Locations anywhere. These extensive reservations of rights mean that a Southern Steer franchisee's territory is not exclusive, and the franchisor has considerable freedom to operate and license other businesses that may compete, even within the franchisee's defined area.