factual

Would providing food preparation classes be considered a 'Competitive Activity' against a Southern Steer franchise?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

(a) Definition of Competitive Activity. "Competitive Activity" means:

  • i.

Offering products and services that are the same as, similar to or competitive with a Southern Steer Business;

  • ii.

Operating a business or selling goods or providing services that features butcher, specialty grocer, marinated meats, or food preparation classes or that employs or incorporates one or more distinctive elements of the System;

Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)

What This Means (2025 FDD)

According to Southern Steer's 2025 Franchise Disclosure Document, offering food preparation classes can be considered a 'Competitive Activity.' The FDD defines 'Competitive Activity' as operating a business or selling goods or providing services that features butcher, specialty grocer, marinated meats, or food preparation classes or that employs or incorporates one or more distinctive elements of the System. This definition is relevant both during the term of the franchise agreement and for a specified period after termination.

During the Initial Term and any Interim Period, a Southern Steer franchisee agrees not to engage in Competitive Activities anywhere other than as expressly authorized in writing by the franchisor. After the termination, transfer, assignment, or expiration of the agreement, the franchisee is restricted from engaging in any Competitive Activity for a period of 24 months. This restriction applies within the Franchised Location, the Protected Area, within 50 miles of the outer boundaries of the Protected Area, within 50 miles from the Franchised Location, and within 50 miles of any other Southern Steer Business.

This non-compete clause is designed to protect Southern Steer's System, Confidential Information, Trade Secrets, Brand Manual, and other proprietary elements. The franchisor believes that allowing franchisees to engage in competitive activities would hinder their ability to devote sufficient time to the Southern Steer Business and would constitute an unfair method of competition. Therefore, a franchisee considering offering food preparation classes, either during or for a period after the franchise term, needs to be aware of these restrictions and seek written authorization from Southern Steer to avoid violating the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.