Are training programs and materials considered 'Confidential Information' for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) "Confidential Information" means and includes all of the business, technology, marketing, operational and proprietary information developed, created, owned or licensed by the Franchisor including, but not limited to, the following: (a) all plans and specifications relating to the construction of any Southern Steer Business, drawings and renderings, FF&E specifications and pricing, the names of all Approved Suppliers and Designated Suppliers, pricing information for any Foods, Beverages and Products sold to any Southern Steer Business, unpublished menus and menu designs, and all food recipes and cooking techniques, (b) all business information, financial data and information, practices, procedures, processes, "know how" and business and operational systems of the Franchisor, (c) all marketing strategies, programs, and concepts, training programs, Brand Manual and materials, and operational and business development concepts, including but not limited to all store design, schematics, construction documents, and artwork, (d) all exclusive sales and marketing processes taught to the Franchisee's personnel during any training programs, (e) all training programs and materials, (f) all Trade Secrets, intellectual property, proprietary databases, computer processes, computer systems, computer software programs and all source codes for all computer software programs (excluding commercially available off-the-shelf third-party software programs), (g) all copyrighted materials that have not been publicly disclosed by the Franchisor which are marked as "confidential," (h) all patents of the Franchisor, including pending patents, (i) all password-protected websites designed, created and developed by the Franchisor, including all passwords, text, content, color schemes, images, graphics, information, look and feel, layout, methodology, metrics, graphical interfaces and functionality, and (j) all other written materials disclosed to the Franchisee which have been designated as "confidential" by the Franchisor.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, training programs and materials are explicitly considered 'Confidential Information.' This means that Southern Steer franchisees are obligated to protect the secrecy of these materials and are restricted from disclosing them to unauthorized parties. This obligation extends not only to the franchisee but also to their employees and agents. The FDD outlines that the franchisor owns all business, technology, marketing, operational, and proprietary information, including training programs and materials. This is part of the franchisor's system, which franchisees are licensed to use. Unauthorized use or disclosure can lead to legal repercussions.
Southern Steer emphasizes the importance of maintaining the confidentiality of its training programs and materials, as they are part of the brand's proprietary system. The definition of 'Confidential Information' includes 'all marketing strategies, programs, and concepts, training programs, Brand Manual and materials, and operational and business development concepts, including but not limited to all store design, schematics, construction documents, and artwork' and also 'all training programs and materials.' This broad definition highlights the extensive scope of information that Southern Steer considers confidential and aims to protect.
For a prospective Southern Steer franchisee, this means they must take precautions to ensure that training materials are not accessible to competitors or used in any way that could harm the Southern Steer brand. Franchisees are responsible for ensuring that their employees also understand and adhere to these confidentiality requirements. This obligation extends beyond the term of the franchise agreement, requiring ongoing vigilance in protecting Southern Steer's confidential information. The franchisee and their associates are restricted from using this information in a competitive business both during their affiliation with Southern Steer and for a period of time afterward.