Besides the Franchisee, who else must Southern Steer insurance policies insure?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Coverage.
Insurance policies must insure the Franchisee, the Franchisor, and their respective Affiliates, officers, stockholders, directors, and all other parties designated by the Franchisor, as additional named insureds against any liability that may accrue against them by reason of the ownership, maintenance or operation by Franchisee of the Southern Steer Business.
The Franchisee agrees to require each supplier and independent contractor with whom it contracts ("supplier") to procure and maintain in full force and effect, at the sole cost and expense of such suppliers, insurance policies, in such amounts and on such terms, as prescribed by the Franchisor in the Brand Manual, insuring the supplier and the Franchisee, the Franchisor, and their respective Executive Management, agents, and employees from and against any and all loss, liability, claim or expense of any kind whatsoever, arising from or as a result of any negligence or other wrongdoing by the supplier or its employees in providing services or products to the Franchisee, the Franchisee's Southern Steer Business or to any customer or invitee of the Southern Steer Business.
All liability insurance policies procured and maintained by the Franchisee in connection with the Franchisee's Southern Steer Business, including the Franchisee's
employment practices liability policy, will require the insurance company to provide and pay for attorneys to defend any legal actions, lawsuits or claims brought against the Franchisee, the Franchisor, and their respective Owners, Executive Management, Designated Managers agents and employees.
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 insurance policies must cover not only the franchisee but also the franchisor and their respective affiliates, officers, stockholders, directors, and any other parties that Southern Steer designates. This requirement ensures that Southern Steer and its related parties are protected from potential liabilities arising from the franchisee's operation of the Southern Steer business.
Furthermore, Southern Steer mandates that franchisees require their suppliers and independent contractors to maintain insurance policies that protect the supplier, the franchisee, Southern Steer, and their respective executive management, agents, and employees. This coverage extends to any loss, liability, claim, or expense resulting from negligence or wrongdoing by the supplier or its employees in providing services or products to the franchisee, the Southern Steer business, or its customers.
Southern Steer also requires that all liability insurance policies procured by the franchisee include a provision for the insurance company to provide and cover the costs of attorneys to defend against any legal actions, lawsuits, or claims brought against the franchisee, Southern Steer, and their respective owners, executive management, designated managers, agents, and employees. This ensures comprehensive legal protection for all involved parties in the event of a claim or lawsuit related to the Southern Steer business.