What is the definition of 'Beneficiary' in the context of transferring a Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
iary must agree to be unconditionally bound by the terms and conditions of this Agreement and must successfully complete the Initial Training Program. There will be no charge to the Beneficiary for attending the Initial Training Program; however, the Salary and Benefits and the Travel Expenses of the Beneficiary must be paid by the Beneficiary. Notwithstanding the forgoing, if this Agreement is Transferred to a Beneficiary, the Franchisee must pay the Franchisor $1,000 prior to the Transfer for legal expenses incurred by Franchisor to prepare transfer documents.
- (b) Failure to Transfer to Beneficiary. If the Beneficiary is unable to meet the conditions of Section 18.2(a), Franchisee or its estate, executor, administrator, conservator or other personal representative will have a reasonable time, not to exceed 180 days, from the date of such death, permanent disability, insanity, or appointment of a conservator or guardian, to dispose of Franchisee's interest, subject to the conditions set out in Section 18.5. Failure to so dispose of Franchisee's interest within 180 days will constitute a breach of this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a 'Beneficiary' is referenced within the context of transferring a franchise upon the death, permanent disability, or insanity of the franchisee. If the beneficiary is unable to meet the standard transfer conditions, the franchisee's estate has 180 days to dispose of the franchise interest, subject to standard transfer conditions. Failure to do so within 180 days constitutes a breach of the franchise agreement.
To ensure continued operation of the Southern Steer business, the franchisee's estate must appoint an interim manager approved by Southern Steer within 15 days of the franchisee's death, disability, or incapacitation. If the estate fails to appoint an interim manager, Southern Steer has the option to appoint one themselves.
This clause ensures that in unforeseen circumstances, there is a structured process for transferring the Southern Steer franchise while maintaining brand standards and operational continuity. The 180-day period provides the estate with time to find a qualified buyer, while the interim manager provision prevents disruption to the business.