For Southern Steer franchisees, how long must financial records be maintained?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ationship, or similar arrangement.
- 13.6. Termination Of Brand Fund. The Brand Fund may be terminated at any time by Franchisor, in its sole discretion. In the event that the Brand Fund is terminated, any remaining balance in the Brand Fund will be expended as provided for in Section 13.2 or returned to Franchisee on a pro-rata basis, in Franchisor's sole determination.
14. REPORTS AND FINANCIAL STATEMENTS
- 14.1. Financial Statements. The Franchisee will maintain and preserve for at least five years from the dates of their preparation, full, complete and accurate books, records and accounts in accordance with generally accepted accounting principles and in the form and manner prescribed by the Franchisor from time to time.
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 are required to maintain and preserve full, complete, and accurate books, records, and accounts for at least five years from the date of their preparation. These records must adhere to generally accepted accounting principles and be maintained in the form and manner prescribed by Southern Steer.
This requirement ensures that Southern Steer franchisees have a documented financial history for review and auditing purposes. It also aligns with standard business practices, as maintaining financial records for several years is essential for tax compliance, financial analysis, and potential audits.
Furthermore, Southern Steer has the right to access and use the information contained in the franchisee's books, records, and accounts for any purpose it deems appropriate. This includes disseminating such information to its creditors and potential franchisees, with the exception that Southern Steer will not disclose social security numbers, birth dates, or home address information without the franchisee's consent, unless required or permitted by law. This access allows Southern Steer to monitor the financial health of its franchisees and make informed decisions regarding the franchise system.