What rights does Southern Steer reserve regarding the System within the franchisee's Protected Area?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the license granted hereunder, including in Section 1.1 is non-exclusive and, notwithstanding anything contained in this Agreement to the contrary, the following rights are reserved to Franchisor and its Affiliates and their successors and assigns:
(a) Except as provided for in Section 1.4, to use, and license the use of, the System or component(s) thereof, for the operation of Southern Steer Businesses inside or outside Franchisee's Protected Area, regardless of proximity to the Protected Area and the Franchised Location;
(b) To offer and sell any products and services sold at Southern Steer Businesses under any other names and marks, including through alternative channels of distribution;
(c) To offer and sell, and/or license or franchise others to offer and sell, products and services for Other Businesses and market Other Businesses to anyone, including prospective and existing Franchisees anywhere within or outside of Franchisee's Protected Area;
(d) To acquire businesses that are the same as or similar to the Southern Steer Business and operate such businesses anywhere within or outside of Franchisee's Protected Area and to be acquired by any third party which operates businesses that are the same as or similar to the Southern Steer Business anywhere within or outside of Franchisee Protected Area;
(e) To market, distribute and sell, on a wholesale or retail basis, food products, prepackaged food, ancillary products and other goods, by direct sale, wholesale, the Internet, mail order, food truck, food trailer, third-party delivery services, other alternative distribution channels or by any other marketing or distribution method that may use the System under the Marks or other trademarks within or outside of Franchisee's Protected Area;
(f) To implement multi-area marketing programs and delivery service programs which may allow Franchisor or others to solicit or sell to customers anywhere and Franchisor has the right to issue mandatory policies to coordinate such multi-area marketing programs and delivery service programs; and
(g) To operate Southern Steer Businesses from Non-Traditional Locations anywhere.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchise agreement grants a non-exclusive license to the franchisee, meaning Southern Steer retains several rights regarding the System, even within the franchisee's protected area. Southern Steer can use and license the System for Southern Steer Businesses inside or outside the franchisee's protected area, regardless of proximity, except as provided in Section 1.4.
Southern Steer also reserves the right to offer and sell products and services sold at Southern Steer Businesses under other names and marks through alternative distribution channels. They can offer and sell, or license others to sell, different products and services for other businesses, marketing these to anyone, including franchisees, within or outside the franchisee's protected area. Additionally, Southern Steer can acquire and operate businesses similar to Southern Steer, or be acquired by a third party operating similar businesses, anywhere, including within a franchisee's protected area.
Furthermore, Southern Steer can market, distribute, and sell food products and other goods wholesale or retail through various channels like direct sales, the Internet, mail order, food trucks, third-party delivery services, or any other method, using the System and Marks within or outside the protected area. They can also implement multi-area marketing and delivery service programs, allowing them or others to solicit or sell to customers anywhere, with the right to issue mandatory policies for these programs. Finally, Southern Steer retains the right to operate Southern Steer Businesses from Non-Traditional Locations anywhere.