factual

What sections outline the reservation of rights that Southern Steer retains within the Protected Area?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

al Term only at the Franchised Location described in Attachment A. The rights granted to Franchisee by this Agreement are limited to the Protected Area and are subject to the reservation of rights described in Section 1.2(a).

  • 1.2. Reservation of Rights. 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.
  • 1.3. Undetermined Franchised Location. The Franchised Location is described in the Attachment A. If the Franchised Location has not yet been determined as of the Effective Date of this Agreement, then when the address of the Franchised Location is determined, the street address, city and state for the Franchised Location will be inserted in Attachment A to this Agreement and signed by both the Franchisor and the Franchisee. Franchisor reserves the right to terminate the Franchise Agreement if Franchisee fails to provide Site Information for the Franchised Location and fails to lease a site for the Franchised Location, approved by Franchisor, within 90 days after the Effective Date of this Agreement.
  • 1.4.

Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)

What This Means (2025 FDD)

According to the 2025 Southern Steer Franchise Disclosure Document, Section 1.2 and Sections 1.2 (b)-(g) outline the reservation of rights that Southern Steer retains, even within a franchisee's protected area. Specifically, Section 1.2(a) states that Southern Steer has the right to use and license the System for Southern Steer Businesses inside or outside the Franchisee's Protected Area, regardless of proximity.

Southern Steer also retains the right to offer and sell products and services sold at Southern Steer Businesses under other names and marks, including through alternative distribution channels. They can also offer and sell products and services for other businesses and market these businesses to anyone, including franchisees, within or outside the franchisee's protected area.

Furthermore, Southern Steer has the right to acquire similar businesses and operate them within or outside the franchisee's protected area. They can also market, distribute, and sell food products and other goods through various methods, including the internet, mail order, food trucks, and third-party delivery services, within or outside the franchisee's protected area. Southern Steer can implement multi-area marketing and delivery service programs and operate Southern Steer Businesses from Non-Traditional Locations anywhere. These rights are further detailed in Sections 1.2 (b)-(g) and Section 1.6.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.