What constitutes 'Executive Management' for a partnership operating a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 the 2025 Southern Steer Franchise Disclosure Document, the definition of 'Executive Management' depends on the legal structure of the franchise entity. Specifically, for a partnership or limited partnership operating a Southern Steer franchise, 'Executive Management' refers to the general partner(s). This definition is important because it clarifies who within the franchise organization holds the highest level of responsibility and decision-making authority.
This definition has implications for various aspects of the franchise agreement. For example, the Operating Principal, who has the authority to bind the Franchisee regarding all operational decisions, may also be a general partner. Furthermore, if the Franchisee is a partnership, the partners may be required to sign a Personal Guaranty, making them personally liable for the franchise's obligations.
Prospective Southern Steer franchisees operating as partnerships should carefully consider who the general partners are and ensure they understand their responsibilities as part of the 'Executive Management.' This includes understanding their obligations under the franchise agreement and any personal guarantees they may be required to provide. This clarity helps ensure smooth operations and compliance with the franchisor's requirements.