Who owns the copyrighted materials created by a Southern Steer franchisee or their employees?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
scretion, determines it is necessary to modify or discontinue use of any Marks or to develop additional or substitute marks or trade names, Franchisee will, within 90 days, or such earlier or longer period of time set out in the written notice from Franchisor, take such action directed by Franchisor at Franchisee sole expense, as may be necessary to comply with such modification, discontinuation, addition or substitution.
- 15.7. Improvements. Franchisee will promptly disclose to Franchisor any changes, improvements, enhancements, advertisements or other marketing materials, inventions, discoveries, creations, patents, copyrights, trademarks, and confidential information relating to Franchisee's Southern Steer Business which Franchisee or any of Franchisee's owners, officers, employees, agents, affiliates, Designated Managers, or independent contractors has made or may make solely, jointly, or commonly with others ("Improvements"). Franchisee will promptly create a written record of the same. Any changes, improvements, or enhancements made to the Southern Steer Business or the Marks, System, Confidential Information, Trade Secrets, Brand Manual, Website and other proprietary information provided to Franchisee by Franchisor made by Franchisee or any of Franchisee's owners, officers, employees, affiliates, agents, Designated Managers or independent contractors or as the result of suggestions or other input from Franchisee or any of Franchisee's owners, officers, employees, affiliates, agents, Designated Managers or independent contractors including without limitation, all copyrightable works, will become part of the Marks, System, Confidential Information, Trade Secrets, Brand Manual, Website and Franchisor's proprietary information owned by Franchisor without any rights of ownership by Franchisee. Franchisee hereby assigns all proprietary rights described in this Section 15.7 to Franchisor without additional consideration.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, any changes, improvements, or enhancements made to the Southern Steer business, Marks, System, Confidential Information, Trade Secrets, Brand Manual, Website and other proprietary information provided to the franchisee by Southern Steer, whether made by the franchisee or their owners, officers, employees, affiliates, agents, Designated Managers, or independent contractors, or resulting from suggestions or other input from them, including all copyrightable works, will become the property of Southern Steer. This means that any creative works related to the Southern Steer business automatically become the property of the franchisor, Southern Steer, without the franchisee retaining any ownership rights. The franchisee is required to assign all proprietary rights to Southern Steer without additional compensation. Southern Steer has the right to make these improvements available for use by all Southern Steer franchisees.
This policy extends to any methods or materials for advertising or marketing the services and products of the franchisee's Southern Steer Business, as well as methods or materials for providing those services and products. The franchisee is obligated to promptly disclose to Southern Steer any changes, improvements, enhancements, advertisements or other marketing materials, inventions, discoveries, creations, patents, copyrights, trademarks, and confidential information relating to the franchisee's Southern Steer Business made by the franchisee or their owners, officers, employees, agents, affiliates, Designated Managers, or independent contractors.
This clause ensures that Southern Steer maintains control over its brand and system, allowing it to implement successful innovations across the franchise network. However, it also means that franchisees do not retain any intellectual property rights for their creative contributions to the Southern Steer system. Franchisees must create a written record of any improvements and assign all rights to Southern Steer, and Southern Steer can use these improvements at its discretion across the franchise system.
For a prospective franchisee, this means that while their creativity and innovation are encouraged, they will not own any of the resulting intellectual property. This is a common practice in franchising, where the franchisor seeks to maintain uniformity and control over the brand. Franchisees should be aware that any improvements they develop for their Southern Steer business will become the property of the franchisor, who can then implement them across the entire franchise system.