During what periods is the Franchisee, each Owner, and the Recipients prohibited from disclosing Confidential Information or Trade Secrets related to the Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Nondisclosure. During the Initial Term of the Franchise Agreement, any Interim Period, any Successor Term and thereafter, Franchisee, each Owner and the Recipients will not at any time, reveal, communicate, sell, use, employ, copy, reverse engineer, imitate, lecture upon, rewrite, reproduce, disseminate, publish, disclose, or divulge, directly or indirectly, for its own benefit or otherwise, the Confidential Information or Trade Secrets.
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 FDD, the franchisee, each owner, and the recipients are prohibited from disclosing Confidential Information or Trade Secrets during the Initial Term of the Franchise Agreement, any Interim Period, any Successor Term, and thereafter. This means the non-disclosure obligation extends indefinitely, even after the franchise agreement ends. The term 'Recipients' refers to the Franchisee, the Designated Manager, the Owner, the Operating Principal, Executive Management, and certain of the Franchisee's employees.
Southern Steer emphasizes the importance of keeping Confidential Information and Trade Secrets private. The FDD states that unauthorized disclosure or use of this information would cause significant harm to Southern Steer and its affiliates. The company has invested considerable resources in developing this information and takes precautions to protect its secrecy.
This perpetual non-disclosure requirement is stricter than some franchise agreements, which often have a time limit (e.g., 2-5 years) on non-disclosure after the agreement terminates. Prospective Southern Steer franchisees should understand that this obligation continues indefinitely, potentially affecting their future business activities even after they leave the Southern Steer system. Franchisees should seek legal counsel to fully understand the implications of this clause.