What expenses are paid from the revenue generated by the Southern Steer business when operated by an interim manager?
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.
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 is unable to operate their Southern Steer business for 45 days or longer, Southern Steer has the right to appoint an interim manager. During the period that the interim manager is operating the Southern Steer business, all revenue 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 account. Additionally, Southern Steer will retain 50% of the gross revenues as a management fee.
This arrangement ensures that the Southern Steer business continues to operate without interruption, but it also means the franchisee will not receive the full revenue during the interim management period. The franchisee is responsible for the business's expenses and also pays a significant portion of the revenue (50%) to Southern Steer for management services. This could significantly impact the franchisee's income during the period an interim manager is in place.