What is the maximum radius of the Protected Area granted to a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
is placed nearby. You may also seek Our prior written approval to relocate Your Southern Steer Business if it is underperforming and the specifics of the relocation must ensure an impact on overall profitability of such Southern Steer Business.
Protected Area
Once the Site for Your Southern Steer Business is selected and approved, We will assign You a Protected Area. Your Protected Area will depend on the location of Your Southern Steer Business and will be tailored to Your specific Site's demographics up to a five-mile radius around the Site of Your Southern Steer Business. There is no minimum geographic territory. We will modify Attachment A to Your Franchise Agreement once the specific location for Your Southern Steer Business is determined to include Your Site and Your Protected Area.
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 franchisee's Protected Area is not a fixed size but is determined based on the specific location of their Southern Steer Business. The Protected Area is tailored to the demographics of the site, with a maximum radius of up to five miles around the Southern Steer Business location. There is no guaranteed minimum geographic territory size. The specifics of the Protected Area, including its size and boundaries, are documented in Attachment A to the Franchise Agreement once the site is approved.
This means that a prospective Southern Steer franchisee's level of territorial protection can vary significantly depending on their location. While a five-mile radius offers a degree of exclusivity, the actual shape and coverage of the Protected Area will depend on demographic factors. This is a fairly typical approach in franchising, where territories are often customized to reflect local market conditions.
It's important to note that even within the Protected Area, Southern Steer retains certain rights. Southern Steer can operate or franchise other Southern Steer Businesses in Non-Traditional Locations such as transportation facilities, sporting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets, or via a delivery service, even within a franchisee's Protected Area. These Non-Traditional Locations are not considered part of the Protected Area. Furthermore, if a franchisee fails to meet Minimum Gross Sales, Southern Steer has the right to decrease or otherwise change the Protected Area, or establish other Southern Steer Businesses in the Protected Area.
Therefore, a prospective Southern Steer franchisee should carefully evaluate the proposed Protected Area for their location, considering the potential for competition from Non-Traditional Locations and the possibility of the territory being reduced if sales targets are not met. Understanding these conditions is crucial for assessing the potential profitability and risks associated with a Southern Steer franchise.