After termination, what is the geographic restriction around the former Franchised Location for a Southern Steer franchisee's competitive activities?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of 24 months after the later of (1) the termination, transfer, assignment or expiration of this Agreement; or (2) the entry of a final order by an arbitrator or a court of competent jurisdiction enforcing this covenant, Franchisee and those persons identified in Section 16.3 will not engage in any Competitive Activity within:
i. the Franchised Location;
ii. the Protected Area;
iii. within 50 miles of the outer boundaries of the Protected Area;
iv. within 50 miles from the Franchised Location;
v. within 50 miles of any other Southern Steer Business, or
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee is restricted from engaging in any competitive activity for 24 months after the termination, transfer, assignment, or expiration of the Franchise Agreement. This restriction also applies after the entry of a final order by an arbitrator or a court enforcing this covenant, whichever is later.
The geographic scope of this restriction includes several areas. First, the franchisee cannot engage in competitive activities at the Franchised Location itself. Second, they are restricted within the Protected Area that was initially assigned to their franchise. Third, the restriction extends to within 50 miles of the outer boundaries of the Protected Area. Fourth, a 50-mile radius around the Franchised Location is also off-limits. Finally, the franchisee is prohibited from engaging in competitive activities within 50 miles of any other Southern Steer Business.
These restrictions also apply to the franchisee's owners, operating principal, designated managers, and, if the franchisee is an entity, its managers, officers, members, directors, partners, shareholders, and non-managing parties. The restrictions also extend to employees, agents, and contractors who have access to confidential information or trade secrets, as well as the franchisee's guarantors. This comprehensive non-compete agreement is designed to protect Southern Steer's market and confidential information.