How is the Protected Area for a Southern Steer franchise determined?

According to Southern Steer's 2025 Franchise Disclosure Document, the Protected Area for a franchisee is determined after the specific site for the Southern Steer Business is selected and approved. The Protected Area's size and shape depend on the location of the Southern Steer Business and will be tailored to the specific site's demographics, extending up to a five-mile radius around the site. It is important to note that there is no minimum geographic territory guaranteed. The specifics of the site and the Protected Area will be documented in Attachment A to the Franchise Agreement once the location is finalized.

While the Franchise Agreement is in effect and the franchisee is not in default, Southern Steer will not operate or franchise another Southern Steer Business within the Protected Area. However, this protection does not extend to Non-Traditional Locations such as transportation facilities, sporting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets, or via a delivery service. These Non-Traditional Locations are not considered part of the Protected Area, meaning Southern Steer can establish a presence in these venues even within a franchisee's Protected Area.

It's also important to understand that the Protected Area is not an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands. Southern Steer also reserves the right to develop other specialty butcher and grocery business concepts under different brand names, even within a franchisee's Protected Area. Additionally, Southern Steer can market and sell products through various channels, including the internet, mail order, food trucks, and third-party delivery services, even within the Protected Area, without compensating the franchisee, except as part of a delivery service program.

Furthermore, Southern Steer retains the right to modify a franchisee's Protected Area or establish other Southern Steer Businesses in the Protected Area if the franchisee fails to meet Minimum Gross Sales requirements. This condition introduces a performance-based risk, where failure to achieve specified revenue targets can lead to a reduction in the Protected Area or increased competition within it. A prospective franchisee should carefully consider these factors and evaluate the potential impact of competition and performance requirements on their investment.