Who owns the Improvements developed by a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You, Your Designated Manager, Operating Principal, owners, directors, employees or other beneficial owners develop any new intellectual property, inventions, copyrights, trade secrets, concepts, processes, recipes, products, or improvements to the operation or promotion or otherwise in relation to Southern Steer Business (collectively, "Improvements") You must promptly notify Us and give Us all necessary information, at no charge. The Improvements will be Our property and You, Your Designated Manager, Operating Principal, owners, directors, employees, or other beneficial owners, will be required to sign an assignment of such Improvements to Us. We may allow other Franchisees to use the Improvements and We may allow You to use Improvements derived from other Franchisees.
Source: Item 14 — ITEM. 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 40–41)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, any improvements developed by a franchisee related to the Southern Steer business become the property of Southern Steer. This includes new intellectual property, inventions, copyrights, trade secrets, concepts, processes, recipes, products, or improvements to the operation or promotion of the business.
Southern Steer requires franchisees to promptly notify them of any such improvements and provide all necessary information without charge. Franchisees, their designated managers, operating principals, owners, directors, employees, and other beneficial owners will be required to sign an assignment transferring ownership of these improvements to Southern Steer.
This policy allows Southern Steer to maintain consistent standards and practices across all franchise locations. Southern Steer may then allow other franchisees to use these improvements, and a franchisee may be allowed to use improvements developed by other franchisees. This creates a collaborative environment where successful innovations can be shared throughout the Southern Steer system.
For a prospective franchisee, this means that while they may contribute to the evolution of the Southern Steer system through their innovations, they will not own the rights to those innovations. The franchisee must assign all rights to Southern Steer. This is a fairly standard practice in franchising, as it allows the franchisor to control and protect the brand and system-wide standards.