factual

For how long after termination or expiration of employment is an Associate of a Southern Steer franchisee subject to a non-compete covenant?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Post-Term Covenant Not to Compete. For a period of 24 months after the termination or expiration of the Associate's employment or affiliation with the Franchisee, Associate will not, on Associate's own account or as an employee, principal, agent, franchisee, independent contractor, consultant, affiliate, licensee, partner, officer, director, shareholder, member, manager, governor or owner of any other person or entity, own, operate, lease, franchise, conduct, engage in, be employed by or connected with, have any interest in or assist any person or entity engaged in any Competitive Business or Competitive Activity within:
    • (i) the Protected Area;
    • (ii) within 50 miles of the outer boundaries of the Protected Area;
    • (iii) within 50 miles from the Franchised Location;
    • (iv) within 50 miles of any other Southern Steer Business, or
    • (v) within any Protected Area or territory granted by the Franchisor pursuant to a Multi-Unit Development Agreement, franchise agreement, license agreement or other territorial agreement.

The Associate expressly agrees that the nature of both the Franchisee's and the Franchisor's business is such that if Associate were to directly or indirectly act in violation hereof in connection with a Competitive Business or Competitive Activity it would be virtually impossible for the Associate not to rely on or use the Confidential Information and Trade Secrets.

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 Southern Steer's 2025 Franchise Disclosure Document, an Associate of a Southern Steer franchisee is subject to a post-term covenant not to compete for a period of 24 months after the termination or expiration of their employment or affiliation with the franchisee.

During this 24-month period, the Associate is restricted from engaging in any Competitive Business or Competitive Activity within specific geographic areas. These areas include the Protected Area, within 50 miles of the outer boundaries of the Protected Area, within 50 miles from the Franchised Location, within 50 miles of any other Southern Steer Business, or within any Protected Area or territory granted by the Franchisor pursuant to a Multi-Unit Development Agreement, franchise agreement, license agreement or other territorial agreement.

This non-compete agreement aims to protect Southern Steer's confidential information, trade secrets, and market presence. The FDD states that it would be virtually impossible for the Associate not to rely on or use the Confidential Information and Trade Secrets if they were to directly or indirectly act in violation of the non-compete in connection with a Competitive Business or Competitive Activity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.