What is the required action for a Southern Steer franchisee, its Operating Principal, and its Designated Manager regarding the prevention of unauthorized use or disclosure of Confidential Information and Trade Secrets?

According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee, its Operating Principal, and its Designated Manager must 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 obligation ensures that sensitive business information remains protected.

This requirement means that Southern Steer franchisees must actively follow any guidelines or protocols established by the franchisor to safeguard confidential data. These procedures could include measures such as restricting access to certain information, implementing secure data storage practices, and training employees on confidentiality obligations. The franchisee, Operating Principal, and Designated Manager all share responsibility for maintaining these safeguards.

For a prospective franchisee, this underscores the importance of understanding and adhering to Southern Steer's confidentiality policies. Failing to comply with these procedures could result in a breach of the franchise agreement and potential legal consequences. Franchisees should be prepared to invest time and resources into implementing and maintaining these protective measures to safeguard Southern Steer's proprietary information.