What is the Southern Steer franchisee required to maintain at all times?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Working Capital.
Franchisee will, at all times, maintain sufficient working capital to operate the Southern Steer Business and to fulfill its obligations under this Agreement, and will take steps to ensure availability of capital to fulfill the Franchisee's obligations to maintain, remodel and modernize the premises and operations of the Southern Steer Business as required by the provisions of this Agreement.
Franchisee will maintain the image of the Southern Steer Business at all times in accordance with Franchisor's standards and specifications, including: (i) ensuring that the Franchised Location is maintained in a clean and orderly manner; (ii) ensuring that all FF&E remain in good, clean condition and inventory is properly displayed; and (iii) only offering such types of products, food items and services, including Food, Beverages and Products, that Franchisor authorizes from time to time for use by Franchise's Southern Steer Business as set forth in the Brand Manual and this Agreement.
The Franchisee will at all times keep its copy of the Brand Manual current and up-to-date, and in the event of any dispute regarding the Brand Manual, the terms of the master copy of the Brand Manual maintained by the Franchisor will be controlling in all respects.
(a) Insurance Policies. The Franchisee must, at its expense, procure and maintain in full force and effect insurance policies, in such amounts and on such terms, as prescribed below or by the Franchisor in the Brand Manual, by an insurance company which is acceptable to and approved by the Franchisor at all times during the Initial Term of this Agreement and any Interim Period, licensed in the state where coverage is provided, and carries an A.M. Best rating of at least A-VII. The Franchisee must obtain such policies before opening the Southern Steer Business.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees must maintain several key aspects of their business at all times. This includes maintaining sufficient working capital to operate the Southern Steer Business and fulfill all obligations under the Franchise Agreement. Franchisees must also take necessary actions to ensure they have enough capital to maintain, remodel, and modernize their business premises as required by the agreement.
In addition to financial stability, Southern Steer franchisees must maintain the image of their business according to the franchisor's standards. This involves keeping the franchised location clean and orderly, ensuring all furniture, fixtures, and equipment (FF&E) remain in good condition, and properly displaying inventory. Franchisees are also restricted to offering only those products, food items, and services that Southern Steer authorizes for use in the business, as detailed in the Brand Manual and the Franchise Agreement.
Furthermore, franchisees are obligated to keep their copy of the Brand Manual current and up-to-date. In case of any discrepancies, the master copy maintained by Southern Steer will take precedence. Franchisees must also procure and maintain insurance policies, including coverage amounts and terms, as prescribed by Southern Steer or in the Brand Manual, with an insurance company acceptable to Southern Steer, licensed in the state where coverage is provided, and holding an A.M. Best rating of at least A-VII. These policies must be in effect before opening the Southern Steer Business and throughout the Initial Term and any Interim Period.
These requirements ensure that all Southern Steer franchises operate to a consistent standard, protecting the brand's reputation and providing a uniform experience for customers. Franchisees should carefully review the Franchise Agreement and Brand Manual to fully understand these obligations and ensure they can meet them consistently.