Who is restricted from engaging in Competitive Business or Competitive Activity after the termination, transfer, assignment, or expiration of the Southern Steer Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
sole discretion.
- (b) Post-Term Covenant Not to Compete. For a period of 24 months after the later of (i) the termination, transfer, assignment or expiration of this Agreement; or (ii) the entry of a final order by an arbitrator or a court of competent jurisdiction enforcing this covenant, neither the Franchisee, the Owners, or the Recipients will, on their own account or as an employee, principal, agent, franchisee, independent contractor, consultant, affiliate, licensee, partner, officer, director, shareholder, member, manager, or owner of any other person or Entity, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or Entity engaged in any Competitive Business or Competitive Activity within:
- (i) the Franchised Location;
- (ii) the Protected Area;
- (iii) within 50 miles of the outer boundaries of the Protected Area;
- (iv) within 50 miles from the Franchised Location;
- (v) within 50 miles of any other Southern Steer Business, or (vi) within any Protected Area or territory granted by the Franchisor pursuant to a Multi-Unit Development Agreement, franchise agreement, license agreement or other territorial agreement.
(c) Acknowledgements.
- (i) The Franchisee, and each Owner, and the Recipients expressly agree that the nature of the Franchisor's Southern Steer Business is such that if they were to directly or indirectly own or operate a Competitive Business or engage in Competitive Activity it would be virtually impossible for the Franchisee, the Owner or the Recipients to not to rely on or use the Confidential Information and Trade Secrets.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the non-compete covenant applies to the Franchisee, the Owners, and the Recipients. For a period of 24 months after the termination, transfer, assignment, or expiration of the Franchise Agreement, these parties are restricted from engaging in any Competitive Business or Competitive Activity.
The restrictions apply within specific geographic areas: the Franchised Location, the Protected Area, within 50 miles of the outer boundaries of the Protected Area, within 50 miles from the Franchised Location, within 50 miles of any other Southern Steer Business, or within any Protected Area or territory granted by the Franchisor pursuant to a Multi-Unit Development Agreement, franchise agreement, license agreement or other territorial agreement.
These restrictions are in place to protect Southern Steer's business interests, including the integrity of their system and to prevent unauthorized duplication by third parties. The agreement states that money damages alone may not adequately compensate Southern Steer if these covenants are breached, and injunctive relief may be necessary to protect Southern Steer and its franchisees and developers.