What agreement is the Designated Manager required to execute for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2. Designated Manager. Prior attending the Initial Training Program, the Franchisee will designate an individual as the "Designated Manager." The Designated Manager will, during the entire period he or she serves as the Designated Manager, devote his or her full time and best efforts to the supervision, conduct and day to day operations of the Franchisee's Southern Steer Business. The Designated Manager must be approved by Franchisor; however, the Designated Manager does not have to have an ownership equity interest in Franchisee. The Designated Manager will be required to execute the Non-Competition and Non-Disclosure Agreement attached to this Agreement as Attachments J-1 and J-2.
- 4.3. Replacement Designated Manager. If during the Term of this Agreement or any Interim Period, the Designated Manager is not able or is not qualified to continue to serve in the capacity of Designated Manager, then the Franchisee will promptly notify the Franchisor in writing and will designate a duly qualified replacement Designated Manager within 30 days after the former Designated Manager ceases to serve in that capacity. The replacement Designated Manager will be required to satisfactorily complete the Initial Training Program, at Franchisee's sole cost and expense, and execute the Non-Competition and Non-Disclosure Agreement within the period required by Franchisor.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Designated Manager is required to execute the Non-Competition and Non-Disclosure Agreement. This agreement is included as Attachments J-1 and J-2 to the franchise agreement. This requirement ensures that the Designated Manager, who is responsible for the day-to-day operations of the Southern Steer Business, is legally bound to protect the brand's confidential information and refrain from engaging in competitive activities.
Furthermore, if a replacement Designated Manager is appointed during the term of the agreement, they must also execute the Non-Competition and Non-Disclosure Agreement within the period required by Southern Steer. This provision maintains consistent protection of Southern Steer's interests even when there are changes in management personnel. The replacement Designated Manager must also satisfactorily complete the Initial Training Program at the franchisee's expense.
The Non-Competition and Non-Disclosure Agreement is a standard legal document in franchising. It prevents individuals with access to sensitive business information from using that information to compete against the franchise, either during their tenure or after they leave. This is particularly important for Southern Steer, as the Designated Manager is intimately involved in the daily operations and could gain valuable insights into the business model and customer base.
Prospective Southern Steer franchisees should carefully review Attachments J-1 and J-2 to fully understand the scope and terms of the Non-Competition and Non-Disclosure Agreement. They should also ensure that any Designated Manager they appoint is willing to sign and abide by this agreement, as it is a mandatory requirement for the role.