Is the beneficiary required to complete the initial training program for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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9. FRANCHISEE DUTIES; OBLIGATIONS AND OPERATING STANDARDS
In addition to the other obligations set forth in other sections of this Agreement, Franchisee are required to do the following, and restricted from doing those things where noted: 9.1. Training. Franchisee or its Operating Principal and the Designated Manager will attend and successfully complete the Initial Training Program and any Additional Training that Franchisor may choose to offer. If Franchisee or its Operating Principal and the Designated Manager fail to satisfactorily complete the Initial Training Program, Franchisor may require Franchisee or its Operating Principal and the Designated Manager to re-take the Initial Training Program or portion thereof and pay the then current training fee, if any. Any Franchisee (or Operating Principal) or Designated Manager who does not successfully complete the required Initial Training Program to the Franchisor's satisfaction will not be permitted to participate in the operations of the Franchisee's Southern Steer Business.
9.2. Compliance with System Standards.
- (a) Quality and Service Standards. The Franchisor has developed and will continue to develop uniform standards of quality, cleanliness, service, and safety applicable to all Southern Steer Businesses, including the Franchisee's Southern Steer Business, to protect and maintain for the benefit of the Franchisor and all of its franchisees and developers the distinction, valuable goodwill and uniformity represented and symbolized by the Marks and the System. The Franchisee agrees to maintain the uniformity and quality standards required by the Franchisor for all Foods, Beverages and Products, and the services associated with the Marks and the System, and agrees to the terms and conditions contained in this Section 9 to assure the public that all Southern Steer Businesses will be uniform in nature and will sell and dispense quality Foods, Beverages and Products.
- (b) Compliance with System Standards. The Franchisee will use the Marks and the System in strict compliance with the moral and ethical standards, quality standards, health standards, operating procedures, specifications, requirements and instructions required by the Franchisor. Franchisee acknowledges and agrees that operation of the Southern Steer Business in accordance with the System, Brand Manual and all present and future standards, specifications, formats, processes, requirements, instructions and procedures established by the Franchisor are the essence of this Agreement and are essential to preserve the goodwill of the System and Marks. Franchisee further agree that Franchisee will operate Franchisee's Southern Steer Business in strict accordance with the terms of this Agreement, the System, Brand Manual and all present and future standards, specifications, formats and procedures.
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 franchisee or its Operating Principal and the Designated Manager are required to attend and successfully complete the Initial Training Program. If they fail to do so satisfactorily, Southern Steer may require them to retake the program or a portion of it, and pay the then-current training fee, if any. Anyone who does not successfully complete the required Initial Training Program to Southern Steer's satisfaction will not be allowed to participate in the operations of the Southern Steer Business. All new Operating Principals and Designated Managers appointed or hired after the Required Opening Date of the Southern Steer Business must attend the Initial Training Program within 45 days (or such time as is designated by Southern Steer) after the date of appointment or hiring.
The Initial Training Program will take place prior to the franchisee's Required Opening Date and will be conducted for up to two weeks, as determined by Southern Steer. It will be held at Southern Steer's headquarters or another location they designate. The franchisee or its Operating Principal and the Designated Manager must satisfactorily complete the Initial Training Program no later than 30 days prior to the franchisee's scheduled Required Opening Date.
In the event of a transfer of the franchise, the Transferee or its Operating Principal and its Designated Manager must also successfully complete the Initial Training Program to the satisfaction of Southern Steer and pay a training fee, if any. The franchisee will pay Southern Steer the then current training fee for any replacement Operating Principals and Designated Managers that attend the Initial Training Program.
Furthermore, the franchisee, the franchisee's Management Staff, and other employees of the franchisee may be required by Southern Steer to attend, at the franchisee's expense, additional training if the franchisee's Southern Steer Business fails to meet certain performance standards established by Southern Steer or Southern Steer otherwise determines, in its sole discretion, that additional training is necessary or required.