What section of the Southern Steer franchise agreement defines 'Competitive Activity'?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2. Non-Competition.
(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, the definition of 'Competitive Activity' is found in Section 16.2(a) of the franchise agreement. This section outlines what actions or business ventures would be considered competitive with a Southern Steer Business.
Specifically, 'Competitive Activity' includes offering products and services that are the same as, similar to, or competitive with a Southern Steer Business. It also encompasses 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 Southern Steer system.
Understanding this definition is crucial for prospective franchisees as it dictates what business activities they (and certain related parties) are restricted from engaging in during the term of the franchise agreement and for a specified period after the agreement terminates or expires. This non-compete clause is typical in franchising to protect the brand and other franchisees in the system.