What expenses can be charged to the separate account when an interim manager operates the Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that Franchisor appoints an interim manager, during the time period such interim manager operates the Franchisee's Southern Steer Business, all revenue from the operation of Franchisee's Southern Steer Business will be kept in a separate account and the expenses of Franchisee's Southern Steer Business, including reasonable compensation and expenses of Franchisor and its agents will be charged to the account.
Additionally, Franchisor will retain 50% of Gross Revenues for Franchisee's Southern Steer Business' as a management fee.
Nothing contained herein will be construed to require Franchisor to operate Franchisee's Southern Steer Business in the case of Franchisee's inability to operate same, and the rights set forth herein may be exercised in the sole and absolute discretion of 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 the franchisee, operating principal, or owners are unable to operate the Southern Steer business for 45 days or longer, Southern Steer has the authority to appoint an interim manager. During the period that the interim manager is in place, all revenue from the Southern Steer business will be kept in a separate account.
The expenses of the Southern Steer business, including reasonable compensation and expenses for Southern Steer and its agents, will be charged to this separate account. Additionally, Southern Steer will retain 50% of the gross revenues as a management fee.
This arrangement is designed to prevent interruption of the Southern Steer business. However, Southern Steer is not required to operate the franchisee's business during the period of the franchisee's inability to do so, and the decision to appoint an interim manager is at the sole discretion of Southern Steer.