Under what conditions may a Southern Steer franchisee operate a food trailer at a Non-Traditional Location?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
orting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets. A Non-Traditional Location is not considered part of the Protected Area.
Except as described below, You may not conduct business at any Site other than Your Southern Steer Business, including without limitation, the use of any other channels of distribution, such as the Internet, Non-Traditional Locations, delivery, wholesale distribution, restaurants, grocery stores, catalog sales or direct marketing, to make sales outside of the Protected Area. We may grant You the right to offer products from Your Southern Steer Business using a food trailer located at a Non-Traditional Location if (1) You are not in default of the Franchise Agreement or any other agreement with Us or any Affiliate of Ours; and (2) You receive Our prior written approval. Any sales made via a food trailer will be included in Gross Revenue. We may enter into a fulfillment agreement with a third-party service provider for third-party delivery (such as Uber Eats or DoorDash and Grubhub) as part of a systemwide delivery program. We reserve the right to issue mandatory policies to coordinate such delivery programs.
Source: Item 12 — ITEM. 12 TERRITORY (FDD pages 35–38)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee may be granted the right to offer products from their Southern Steer Business using a food trailer located at a Non-Traditional Location if they meet specific conditions. These conditions are that the franchisee must not be in default of the Franchise Agreement or any other agreement with Southern Steer or any of its affiliates. Additionally, the franchisee must receive prior written approval from Southern Steer. Any sales made via a food trailer will be included in the franchisee's Gross Revenue.
It is important to note that Southern Steer defines a "Non-Traditional Location" broadly, including transportation facilities, sporting arenas, educational facilities, medical facilities, entertainment facilities, military facilities, food trucks, food trailers, music venues, schools, amphitheaters, and farmers markets. These Non-Traditional Locations are not considered part of the franchisee's Protected Area. This means that Southern Steer or other franchisees could potentially operate in these locations within the franchisee's general territory.
This arrangement allows Southern Steer to explore alternative distribution channels while still requiring franchisees to adhere to the terms of their agreements. For a prospective franchisee, this means that while the opportunity to operate a food trailer at a Non-Traditional Location exists, it is subject to approval and compliance with the franchise agreement. Furthermore, sales from the food trailer contribute to the overall Gross Revenue, which is relevant for meeting minimum sales requirements and other financial obligations outlined in the Franchise Agreement.