Does the Southern Steer Nondisclosure and Noncompetition Agreement limit the rights and obligations of the parties as set forth in the Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Cumulative Rights and Remedies. The rights and obligations of the Parties set forth herein are cumulative of and do not in any way limit the rights and obligations of the Parties as set forth in the Franchise Agreement which are independently enforceable.
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 the 2025 Southern Steer Franchise Disclosure Document, the Nondisclosure and Noncompetition Agreement does not limit the rights and obligations of the parties as defined in the Franchise Agreement. Instead, the rights and obligations outlined in the Nondisclosure and Noncompetition Agreement are cumulative and independently enforceable, meaning both agreements stand on their own.
This means that Southern Steer franchisees and owners are bound by both the Franchise Agreement and the Nondisclosure and Noncompetition Agreement, and a breach of either agreement can be pursued separately. The Nondisclosure and Noncompetition Agreement serves to reinforce the protection of Southern Steer's confidential information and trade secrets, ensuring that these are safeguarded in addition to the provisions in the Franchise Agreement.
For a prospective Southern Steer franchisee, this highlights the importance of carefully reviewing and understanding both agreements. The franchisee must recognize that compliance with both agreements is essential and that any violation can lead to legal repercussions independent of the other agreement. This dual-layered protection emphasizes the franchisor's commitment to protecting its brand and system.