Can the Franchisor inspect a Southern Steer franchisee's security measures?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Inspection of Security Measures.
Upon the Franchisor's request, the Franchisee will allow, and will require any subcontractor(s) to allow, the Franchisor (or the Franchisor's designees) to inspect the implementation of associated administrative, physical and technical security measures, as the case may be, to assess whether its security program complies with applicable information security requirements.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer has the right to inspect a franchisee's security measures. Upon request, a franchisee must allow Southern Steer (or its designees) to inspect the implementation of administrative, physical, and technical security measures. This inspection assesses whether the franchisee's security program complies with applicable information security requirements. The franchisee must also require any subcontractors to allow these inspections.
This provision ensures that Southern Steer can verify that franchisees are taking adequate steps to protect sensitive information and maintain data security standards. It also allows Southern Steer to proactively identify and address potential security vulnerabilities within the franchise system.
In addition to inspections, Southern Steer requires franchisees to immediately (but no later than two hours) notify them of any actual or suspected Breach of Security. This notification must include details such as the date and time of discovery and occurrence, a description of the breach, a list of affected systems and data, and a description of remediation actions taken or proposed. Franchisees must also provide regular reports and updates on the investigation and corrective actions. Southern Steer may also take actions necessary to remedy a Breach of Security, including conducting an investigation and notifying affected parties or government agencies. The franchisee is responsible for cooperating with Southern Steer and bearing all costs associated with the breach and compliance with the law, although Southern Steer may require the franchisee to take action to remedy the breach at the franchisee's expense.
These security measures are crucial for protecting sensitive data and maintaining the integrity of the Southern Steer brand. Prospective franchisees should carefully review these requirements and ensure they have the resources and expertise to comply with them.