What documents must a new owner of a Southern Steer franchise execute?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
upon written request;
(f) The names of the Owners of the Franchisee and their Ownership Interests in the Franchisee are accurately stated and completely described in the Statement of Ownership attached as Attachment B;
(g) The Franchisee will at all times maintain a current schedule of the Owners of the Franchisee and their Ownership Interests, and the Franchisee will immediately provide the Franchisor with a copy of the updated Ownership Statement whenever there is any change of Ownership. The Ownership Statement will contain the name, address, telephone number and e- mail address of each Owner of the Franchisee and will state the percentage of Ownership that each Owner has in the Franchisee;
(h) If any person or entity ceases to be one of the Franchisee's Owners, or if any individual or entity becomes an Owner of the Franchisee, then the Franchisee will notify the Franchisor in writing and within five business days the Franchisee will require the new Owner to execute all documents then required by the Franchisor;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if an individual or entity becomes a new owner of a Southern Steer franchise, the franchisee must ensure the new owner executes all documents required by Southern Steer at that time. These documents include a Personal Guaranty (Attachment C) and a Non-competition and Non-Disclosure Agreement (Attachment I-1).
Furthermore, the franchisee's organizational documents must state that no ownership interest can be assigned or transferred unless it strictly complies with the terms and conditions outlined in the franchise agreement. This ensures Southern Steer maintains control over who becomes an owner and that all new owners are bound by the same obligations.
In the event of a transfer of ownership interests, the transferee's owners and designated manager must sign the Non-competition and Non-Disclosure Agreement, if required by Southern Steer. The transferee and all of the transferee's owners must also execute agreements required by Southern Steer to document the transfer, including the Personal Guaranty. These measures protect Southern Steer's interests and ensure the new owners are fully committed to the franchise system.