Who must sign the Non-Competition and Non-Disclosure Agreement for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The restrictions set forth in this Section 16 apply to (a) Franchisee, its Owners and Operating Principal; (b) Designated Managers; (c) if Franchisee is an Entity, its managers, officers, members, directors, partners, shareholders, non-managing parties; (d) employees, agents and contractors who have access to the Confidential Information and/or Trade Secrets; and (e) Franchisee's Guarantors.
- 16.4.
Noncompetition and Nondisclosure Agreement.
Franchisee is required to obtain a signed Noncompetition and Nondisclosure Agreement in the forms attached as Attachment I from the parties described in this Section 16.3. Notwithstanding the foregoing, Franchisee's employees that qualifies as nonexempt under the Fair Labor Standards Act (FLSA) are not required to sign the Non-Competition and Non-Disclosure Agreement.
The Franchisee will be responsible for (a) ensuring that each person required to execute a Noncompetition and Nondisclosure Agreement does so; (b) enforcing such Nondisclosure and Noncompetition Agreements, and (c) paying for the legal fees, costs, and expenses associated with such
enforcement.
The Franchisor has the right to regulate the form of Nondisclosure and Noncompetition Agreement to be executed and to be a third-party beneficiary of or a party to such agreement with independent enforcement rights.
Source: Item 15 — ITEM. 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, several parties associated with the franchisee are required to sign a Non-Competition and Non-Disclosure Agreement. These parties include the franchisee, its owners, and the operating principal. Additionally, designated managers, and if the franchisee is an entity, its managers, officers, members, directors, partners, shareholders, and non-managing parties must also sign the agreement.
The agreement extends to employees, agents, and contractors who have access to confidential information or trade secrets related to the Southern Steer business. Furthermore, the franchisee's guarantors are also subject to these restrictions. However, employees who qualify as nonexempt under the Fair Labor Standards Act (FLSA) are not required to sign the Non-Competition and Non-Disclosure Agreement.
The franchisee bears the responsibility of ensuring that all individuals required to sign the agreement do so and for enforcing the terms of the agreement. This includes covering any legal fees, costs, and expenses associated with enforcement. Southern Steer retains the right to regulate the form of the Non-Competition and Non-Disclosure Agreement and can act as a third-party beneficiary with independent enforcement rights. This comprehensive approach ensures that a wide range of individuals connected to the Southern Steer franchise are bound by confidentiality and non-competition obligations, protecting the franchisor's interests.