What constitutes 'Executive Management' for a limited liability company operating a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Entity. "Entity" will mean a corporation, limited liability company, partnership, limited partnership or any other type of legal entity formed in compliance with applicable law.
- 30.18.
Executive Management. "Executive Management" will mean: (a) the officers and directors specified in the by-laws if the specified Entity is a corporation; (b) the manager, chief manager, managers and/or governors specified in the operating agreement or by-laws if the specified Entity is a limited liability company; or (c) the general partner(s) if the specified Entity is a partnership or a limited partnership.
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 definition of 'Executive Management' depends on the legal structure of the franchisee's business entity. Specifically, for a limited liability company (LLC) operating a Southern Steer franchise, 'Executive Management' refers to the manager, chief manager, managers, and/or governors specified in the operating agreement or by-laws of the LLC. This definition is important because these individuals hold specific responsibilities and decision-making authority within the franchise operation.
For a prospective Southern Steer franchisee, understanding who constitutes 'Executive Management' is crucial because these individuals are typically responsible for the overall direction and performance of the franchise. Their roles are defined by the operating agreement or by-laws of the LLC, which outlines their authority and responsibilities. This also has implications for legal and contractual obligations, as these individuals may be required to sign documents or make decisions on behalf of the franchise.
It is important for potential franchisees to carefully review their operating agreement or by-laws to clearly identify who holds these 'Executive Management' positions. This clarity helps in understanding the management structure and decision-making processes within the franchise. Furthermore, Southern Steer may require these individuals to fulfill certain obligations or undergo specific training, making it essential to identify them accurately from the outset.