What is the purpose for which Southern Steer grants Franchisee the license to use the System and Marks?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ms and conditions of this Agreement and in consideration of the mutual promises and covenants herein.
The Franchisor and the Franchisee agree, and contract as follows:
1. GRANT OF FRANCHISE; FRANCHISED LOCATION; PROTECTED AREA.
- 1.1. Grant. Subject to all the terms and conditions of this Agreement, Franchisor grants Franchisee, and Franchisee accepts, a personal license to use the System and Marks solely for the purpose of operating a Southern Steer Business during the Initial Term only a
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer FDD, Southern Steer grants the franchisee a personal license to use the System and Marks. This license is specifically for operating a Southern Steer Business during the initial term at the franchised location. The rights are limited to the protected area and are subject to certain reservations of rights.
This means a franchisee's ability to use Southern Steer's trademarks, operational methods, and other proprietary information is strictly tied to running their franchised business. The franchisee can only operate during the agreed-upon term and within the specified location and protected area. Southern Steer retains rights to use the system and its components for other Southern Steer businesses, even within the franchisee's protected area, with some exceptions.
The franchisee must adhere to Southern Steer's uniformity requirements and quality standards. The franchisee's use of the System and Marks must align with the standards established and updated by Southern Steer. This ensures consistency across all Southern Steer locations and helps maintain the brand's reputation.
Southern Steer also maintains control over how the franchisee identifies their business. While the franchisee must primarily use the trademark "SOUTHERN STEER BUTCHER," they must also identify themselves as the independent owner and operator in a manner prescribed by Southern Steer. This prevents customers from mistaking the franchisee as an employee or agent of Southern Steer, clarifying the franchisee's independent business status.