What are 'Proprietary Ingredients' in the context of a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain of these Foods, Beverages, and Products may include or comprise proprietary ingredients ("Proprietary Ingredients") necessary to produce food that satisfies the Franchisor's quality and consistency standards, and other Foods, Beverage and Products designated by the Franchisor from time to time.
The Franchisor reserves the absolute right to update or otherwise modify the list of Foods, Beverages and Products and Proprietary Ingredients from time to time.
- 7.3.
Brand Name Foods, Beverages and Products.
The Franchisee will purchase and use in the operations of its Southern Steer Business all of the brand name Foods, Beverages and Products specified in the Brand Manual or otherwise in writing by the Franchisor.
- 7.4.
Branding of Foods, Beverages or Products.
The Franchisee will not have the right to: (a) use or display the Marks on or in connection with any foods, beverages or products that have not been approved by the Franchisor; (b) acquire, develop or manufacture any food, beverage or product using the name "Southern Steer Butcher" or any of the Marks, or direct any other person or Entity to do so; (c) acquire, develop or manufacture any Foods, Beverages or Products that have been developed or manufactured by or for the Franchisor for use in conjunction with the operations of the Southern Steer Business and which are sold under any of the Marks, or direct any other person or Entity to do so; or (d) use, have access to, or have any rights to any proprietary formulas, ingredients, or recipes for any Foods, Beverages or Products created by or at the direction of the Franchisor and sold under any of the Marks.
- 7.5.
Designated Suppliers.
The Franchisee will purchase the certain Foods, Beverages and Products, FF&E, signage, marketing materials, third party delivery services, and equipment as specified in the Brand Manual or otherwise in writing by the Franchisor solely and exclusively from Designated Suppliers.
The Franchisor or an Affiliate may be a Designated Supplier.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Proprietary Ingredients are specific components that may be necessary to maintain the brand's standards for quality and consistency in its food products. These ingredients are included in certain foods, beverages, and products that Southern Steer franchisees are required to offer. The franchisor retains the right to modify the list of these proprietary ingredients over time.
As a Southern Steer franchisee, you are obligated to purchase and use all brand-name foods, beverages, and products, including those with proprietary ingredients, as specified in the Brand Manual or in writing by the franchisor. You are restricted from using the Southern Steer marks in connection with any food, beverage, or product that hasn't been approved by the franchisor. Additionally, franchisees cannot independently develop or manufacture any food, beverage, or product using the Southern Steer name or marks, especially those already developed or manufactured by Southern Steer.
Furthermore, franchisees are not allowed to access or use any proprietary formulas, ingredients, or recipes created by or for Southern Steer. To ensure consistency and quality, franchisees must purchase certain items, including those with proprietary ingredients, exclusively from designated suppliers. Southern Steer or its affiliates may also act as designated suppliers. This system ensures that the brand maintains control over the ingredients and recipes used in its products, safeguarding its reputation and customer expectations.