What procedures are the Southern Steer franchisee or its Operating Principal and its Designated Manager required to adopt and implement to prevent unauthorized use or disclosure of the Confidential Information and Trade Secrets?

According to the 2025 Southern Steer Franchise Disclosure Document, the franchisee, its Operating Principal, and its Designated Manager are required to adopt and implement all reasonable procedures prescribed by Southern Steer from time to time to prevent unauthorized use or disclosure of Confidential Information and Trade Secrets. This means Southern Steer has the right to dictate specific measures that franchisees must follow to safeguard sensitive business data. These procedures are not static and may change over time, requiring franchisees to stay updated and compliant with any new requirements.

Confidential Information includes a wide array of proprietary information, such as business practices, marketing strategies, recipes, and computer software. Trade Secrets encompass any secret information that gives Southern Steer a competitive edge. The Operating Principal is an individual approved by Southern Steer who owns or controls at least 51% of the franchise and has the authority to make operational decisions. The Designated Manager is an individual who devotes full time and effort to the daily operations of the Southern Steer business but does not necessarily have ownership.

This requirement places a significant responsibility on the franchisee and its management team to actively protect Southern Steer's confidential information. Failure to comply with these procedures could result in a breach of the franchise agreement and potential legal consequences. Prospective franchisees should inquire about the specific procedures currently in place and the types of changes they can expect over time to fully understand their obligations.