Who benefits from the provisions of the Southern Steer Personal Guaranty?

According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer Franchising International, LLC benefits from the Personal Guaranty. The document states that if the franchisee is a corporation, partnership, limited liability company, or other entity, Southern Steer will require the franchisee's officers, directors, shareholders, partners, members, managers, owners, and owner's spouses or domestic partners to sign a Personal Guaranty.

In essence, this guaranty ensures that Southern Steer has recourse to the personal assets of the franchisee's leadership and their spouses/domestic partners if the franchise entity fails to meet its financial or contractual obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security beyond the assets of the franchise business itself.

For a prospective Southern Steer franchisee, this means that they, along with their officers, directors, shareholders, partners, members, managers, owners, and their spouses or domestic partners, will be personally liable for the franchise's debts and obligations to Southern Steer. This is a significant commitment and should be carefully considered, as it puts personal assets at risk. Franchisees should consult with legal and financial advisors to fully understand the implications of signing a personal guaranty.