Who approves the Designated Manager 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 franchisor must approve the Designated Manager. Prior to attending the Initial Training Program, the franchisee must designate an individual to serve as the Designated Manager, who will then be subject to approval by Southern Steer.
The Designated Manager is responsible for the day-to-day operations of the Southern Steer business and must devote their full time and best efforts to these duties. Unlike the Operating Principal, the Designated Manager is not required to have an ownership equity interest in the franchise.
The Designated Manager is required to execute the Non-Competition and Non-Disclosure Agreement attached to the Franchise Agreement. If a replacement Designated Manager is needed, they must also complete the Initial Training Program at the franchisee's expense and execute the Non-Competition and Non-Disclosure Agreement.