What locations are considered 'Non-Traditional Locations' for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as the Franchise Agreement is in force and You are not in default under it or any other agreement with Us or any Affiliate of Ours, neither We nor Our Affiliates will own or operate or franchise or license others to own or operate a Southern Steer Business within Your Protected Area, other than in a Non-Traditional Location or via a delivery service. A "Non-Traditional Location" includes transportation facilities, sporting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets. A Non-Traditional Location is not considered part of the Protected Area.
Source: Item 12 — ITEM. 12 TERRITORY (FDD pages 35–38)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a "Non-Traditional Location" includes various venues outside of a typical brick-and-mortar store. These locations encompass transportation facilities, sporting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets. These Non-Traditional Locations are explicitly excluded from a franchisee's protected area. This means that Southern Steer itself, or other franchisees, can operate within these venues even if they are geographically within your protected territory.
This aspect of the franchise agreement has significant implications for prospective franchisees. While a franchisee is granted a protected area, the presence of Non-Traditional Locations within that area introduces a potential source of competition. Southern Steer retains the right to operate or franchise additional locations in these non-traditional venues, regardless of the impact on an existing franchisee's business. This is a crucial factor to consider when evaluating the potential market and revenue projections for a Southern Steer franchise.
Furthermore, the FDD indicates that franchisees may be granted the right to operate a food trailer at a Non-Traditional Location, subject to approval from Southern Steer and compliance with the franchise agreement. Any sales made through such a food trailer will be included in the franchisee's gross revenue. This presents an additional avenue for generating income, but it also requires careful consideration of the operational logistics and potential costs associated with managing a mobile food unit.
In summary, while the Southern Steer franchise offers a protected area, the carve-out for Non-Traditional Locations represents a notable exception that could impact a franchisee's market share. Prospective franchisees should carefully evaluate the presence and potential impact of these locations within their designated territory and discuss with Southern Steer the possibilities and requirements for operating a food trailer at such venues.