Where is the nonexclusive Protected Area for a Southern Steer Franchisee defined?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchise Agreement if Franchisee fails to provide Site Information for the Franchised Location and fails to lease a site for the Franchised Location, approved by Franchisor, within 90 days after the Effective Date of this Agreement.
- 1.4. Protected Area. Except as provided to the contrary in this Section, the Franchisee will receive the nonexclusive "Protected Area" defined in the Attachment A attached to this Agreement. Subject to the reservation of rights set out in Sections 1.2 (b)-(g) and Section 1.6 and so long as the Franchisee is not in default of this Agreement or any other agreement with Franchisor or any of Franchisor's Affiliates past applicable cure periods, the Franchisor and its Affiliates will not have the right to own, operate, franchise or license others to own or operate a Southern Steer Business physically located within the Franchisee's Protected Area, with the exception of Non-Traditional Locations.
- 1.5. Relocation.
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 nonexclusive Protected Area for a franchisee is defined in Attachment A of the Franchise Agreement. Specifically, the document states, "Except as provided to the contrary in this Section, the Franchisee will receive the nonexclusive 'Protected Area' defined in the Attachment A attached to this Agreement." Attachment A further specifies that the Protected Area is a five-mile radius around the Franchised Location.
It is important to note that this Protected Area is nonexclusive, meaning Southern Steer retains certain rights within that area. These rights include the ability to operate Southern Steer Businesses from Non-Traditional Locations anywhere, use and license the System for Southern Steer Businesses inside or outside the Franchisee's Protected Area, and offer and sell products and services through alternative channels of distribution.
Furthermore, Southern Steer can decrease or modify the franchisee's Protected Area if the franchisee fails to meet the Minimum Gross Revenues for any Year. They can also operate or license others to operate Southern Steer Businesses in the Protected Area under the same condition. The franchisee is also prohibited from engaging in marketing, sales, and promotional activities outside the Protected Area without prior written approval from Southern Steer.