What is the term of the Intellectual Property License Agreement between Southern Steer and its affiliate?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Mark(s) is owned by Our Affiliate, Southern Steer Butcher, LLC. We entered into an Intellectual Property License Agreement with Southern Steer Butcher, LLC licensing the use of the Mark(s) and System to Us ("License Agreement"). Under the License Agreement, Southern Steer Butcher, LLC granted Us the non-exclusive right to use and license the Mark(s) for the purpose of franchising Southern Steer Businesses. The term of the License Agreement is 30 years with automatic one-year renewal periods, and the License Agreement cannot be modified or terminated except by the mutual agreement of the parties. Other than the License Agreement, there are no agreements currently in effect which significantly limit Our rights to use or license the use of the Mark(s).
Source: Item 13 — ITEM. 13 TRADEMARKS (FDD pages 38–39)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Intellectual Property License Agreement between Southern Steer and its affiliate, Southern Steer Butcher, LLC, has an initial term of 30 years. After the initial term, the agreement automatically renews for additional one-year periods. This agreement grants Southern Steer the right to use and license the brand's trademarks and system for franchising Southern Steer businesses.
This long-term agreement provides Southern Steer with a stable foundation for its franchising operations. The automatic renewal clause further ensures the continued use of the intellectual property, unless both parties mutually agree to modify or terminate the agreement. This arrangement is typical in franchising, as it secures the brand's identity and operational methods for the franchisor, which is then licensed to franchisees.
For a prospective Southern Steer franchisee, this agreement means that the brand and system they are investing in are secured for the long term. The franchisee can be reasonably assured that Southern Steer will continue to have the right to use and license the trademarks and system, which is crucial for maintaining brand consistency and customer recognition. However, it is important to note that the agreement can only be modified or terminated by mutual agreement, which means that Southern Steer's rights are well-protected, but also that changes may be difficult to implement if the affiliate does not agree.
It is also important to note that the Franchise Agreement grants the franchisee a non-exclusive right to use the Mark(s) in their Southern Steer Business. The franchisee can only use the Mark(s) in the manner authorized in the Franchise Agreement and Brand Manual and may not use the Mark(s) as part of their corporate or other entity name.