What actions can the Franchisor take to remedy a Breach of Security at a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor may, in its sole discretion, take any and all actions necessary or reasonable to remedy a Breach of Security, including conducting an investigation into the cause of the Breach of Security and notifying affected persons or government agencies accordingly.
The Franchisee will cooperate and provide the Franchisor with all information reasonably necessary to (a) aid the Franchisor's compliance with all federal and state data breach notification laws and any other laws or regulations that may be applicable to a
Breach of Security; and (b) facilitate the Franchisor's determination of whether the breach was effectively mitigated.
The Franchisee will bear all costs and expenses incurred by the Franchisor related to the Breach of Security and compliance with law, including but not limited to any government fines or penalties imposed on the Franchisor as a result of the Breach of Security.
Alternatively, the Franchisor may require that the Franchisee take action to remedy the Breach of Security at the Franchisee's expense.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, in the event of a security breach, Southern Steer has the discretion to take actions deemed necessary to remedy the breach. These actions can include conducting an investigation to determine the cause of the security breach and notifying affected individuals or government agencies.
Southern Steer may also require the franchisee to take action to remedy the breach at the franchisee's own expense. The franchisee is obligated to cooperate with Southern Steer, providing all reasonably necessary information to aid in compliance with federal and state data breach notification laws and to help determine if the breach was effectively mitigated.
The franchisee is responsible for covering all costs and expenses incurred by Southern Steer related to the security breach and compliance with the law. This includes any government fines or penalties imposed on Southern Steer as a result of the breach. This allocation of responsibility places a significant financial burden on the franchisee in the event of a security breach, highlighting the importance of robust security measures and compliance with data protection laws.