factual

Under the Southern Steer Nondisclosure and Noncompetition Agreement, what is the relationship between the rights and obligations in this agreement and those in the Franchise Agreement?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

  • B. Franchisor's Confidential Information and Trade Secrets are all operations, marketing, materials and data bases, advertising, development and related information which are developed and utilized in connection with the operation of the Southern Steer Business, the Brand Manual, all aspects of the System, all information regarding, the terms of the Franchise Agreement, and all Franchisor or its Affiliates proprietary information (whether in print, electronic form, or oral).
  • C. Franchisor and its Affiliates have established substantial goodwill and an excellent reputation with respect to the Marks, Confidential Information and Trade Secrets, which goodwill and reputation have been and will continue to be of major benefit to Franchisor and its Affiliates.
  • NOW, THEREFORE, to confirm the obligation and covenants of the Franchisee and the Owner with respect to the prohibited use and disclosure of the Confidential Information and Trade Secrets, and for good and valuable consideration, the sufficiency of which each Party hereby acknowledges, the Parties hereby agree as follows:
    1. Definitions. All capitalized terms not specifically defined in this Agreement, will have the meaning given to them in the Franchise Agreement.
    1. Cumulative Rights and Remedies. The rights and obligations of the Parties set forth herein are cumulative of and do not in any way limit the rights and obligations of the Parties as set forth in the Franchise Agreement which are independently enforceable.

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, the Nondisclosure and Noncompetition Agreement's rights and obligations are cumulative and do not limit those outlined in the Franchise Agreement. This means that Southern Steer franchisees are bound by both agreements, and the franchisor can enforce either or both.

The Nondisclosure and Noncompetition Agreement reinforces the protection of Southern Steer's confidential information and trade secrets. These include operations, marketing materials, databases, advertising, development information, the Brand Manual, the System, the terms of the Franchise Agreement, and all proprietary information. This agreement confirms the franchisee's and owner's commitment to protecting this information.

In practical terms, a prospective Southern Steer franchisee should understand that signing the Nondisclosure and Noncompetition Agreement adds another layer of legal obligation on top of the Franchise Agreement. Both agreements are independently enforceable, giving Southern Steer multiple avenues to protect its interests. Franchisees must comply with both agreements, and a breach of either could lead to legal action.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.