After termination of the Southern Steer franchise agreement, what is the franchisee prohibited from doing regarding association with the franchisor?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.3.
Prohibited Activity.
After any termination, expiration, Transfer or cancellation of this Agreement for any reason whatsoever, Franchisee, its Owners, Operating Principal, Guarantor(s) agree:
(a) not to directly or indirectly at any time or in any manner identify or do anything to indicate that they (except in resumes or applications in pursuit of employment) or any business are or were a current or former franchisee or are or were otherwise associated with Franchisor;
(b) not to use any of the System, Confidential Information, Trade Secrets, Brand Manual, Website, Marks, Franchisor or its Affiliates proprietary materials or colorable imitation thereof or anything confusingly similar thereto;
(c) not use any indicia of Franchisor or of the Southern Steer Business in any manner for any purpose;
(d) not, at any time or in any manner, disparage or take any action detrimental or disruptive to Franchisor, its Affiliates, owners, officers, directors, members, or any other Southern Steer franchisees, licensees or their products or services; and
(e) not conduct or promote any business under any name or in any manner that might tend to give the general public the impression that the Franchisee is continuing to operate as a Southern Steer franchisee.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, after the termination, expiration, transfer, or cancellation of the franchise agreement, the franchisee, its owners, operating principal, and guarantor(s) are subject to several prohibitions regarding association with Southern Steer.
Specifically, they cannot directly or indirectly identify themselves as a current or former franchisee, or indicate any past or present association with Southern Steer, except in resumes or job applications. They are barred from using any element of the Southern Steer system, including confidential information, trade secrets, the brand manual, website, marks, proprietary materials, or anything confusingly similar.
Furthermore, the franchisee is prohibited from using any symbols or indicators of Southern Steer for any purpose and from disparaging Southern Steer, its affiliates, owners, officers, directors, members, or other franchisees. Finally, they cannot operate or promote any business in a way that might lead the public to believe they are still a Southern Steer franchisee. These restrictions ensure a clear separation between the former franchisee and the Southern Steer brand, protecting the brand's integrity and reputation.