When does the post-term covenant not to compete begin for a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of 24 months after the later of (1) the termination, transfer, assignment or expiration of this Agreement; or (2) the entry of a final order by an arbitrator or a court of competent jurisdiction enforcing this covenant, Franchisee and those persons identified in Section 16.3 will not engage in any Competitive Activity within:
i. the Franchised Location;
ii. the Protected Area;
iii. within 50 miles of the outer boundaries of the Protected Area;
iv. within 50 miles from the Franchised Location;
v. within 50 miles of any other Southern Steer Business, or
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the post-term covenant not to compete begins either after the termination, transfer, assignment, or expiration of the Franchise Agreement, or after the entry of a final order by an arbitrator or court enforcing the covenant, whichever is later.
Specifically, the non-compete period lasts for 24 months. During this time, the franchisee and related parties cannot engage in any competitive activity within the franchised location, the protected area, or within 50 miles of the outer boundaries of the protected area, the franchised location, or any other Southern Steer Business.
This restriction is significant for a prospective Southern Steer franchisee because it limits their ability to operate a similar business in a defined geographic area for two years after the franchise agreement ends. Franchisees should carefully consider these limitations and how they might affect their future business opportunities before entering into an agreement.