Does Southern Steer assume any liability to the franchisee for collecting amounts due to the Brand Fund?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor assumes no direct or indirect liability or obligation to Franchisee for collecting amounts due to the Brand Fund or any advertising account.
Franchisor will not be liable for any act or omission with respect to the Brand Fund, including but not limited to, maintaining, directing or administering the Brand Fund or any other advertising account.
No action taken by Franchisor will diminish Franchisee obligation to pay the Brand Fund Contribution.
Franchisee and Franchisor agree that their rights and obligations with respect to the Brand Fund and all related matters are governed solely by this Agreement and neither this Agreement or the Brand Fund creates a trust, fiduciary relationship, or similar arrangement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer assumes no liability to the franchisee for collecting Brand Fund contributions. The document states that Southern Steer assumes no direct or indirect liability to the franchisee for collecting amounts due to the Brand Fund or any advertising account. Additionally, Southern Steer will not be liable for any act or omission regarding the Brand Fund, including maintaining, directing, or administering it.
This means that as a franchisee, you cannot hold Southern Steer responsible for any issues related to the collection or management of Brand Fund contributions. This includes errors in collecting the funds or decisions made in administering the fund.
The agreement specifies that the franchisee's obligation to pay the Brand Fund Contribution will not be diminished by any action taken by Southern Steer. The rights and obligations related to the Brand Fund are governed solely by the Franchise Agreement, and neither the agreement nor the Brand Fund creates a trust or fiduciary relationship. This underscores that Southern Steer is not acting as a trustee or fiduciary in managing the Brand Fund, further limiting their liability.