Is the Southern Steer franchisor responsible for controlling or managing the franchisee's employees?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will be responsible for the operation of its Southern Steer Business, and will control, supervise and manage all the employees, agents and independent contractors who work for or with the Franchisee.
The Franchisor will not have any right, obligation or responsibility to control, supervise or manage the Franchisee's employees, agents or independent contractors.
25. INDEPENDENT CONTRACTORS
- 25.1. Independent Contractors. Nothing in this Agreement is intended by the parties hereto to create a fiduciary relationship between them nor to constitute the Franchisee as a subsidiary, joint venturer, partner, agent or employee of the Franchisor for any purpose whatsoever. It is understood and agreed that the Franchisee is an independent contractor and is in no way authorized to make any warranty or representation on behalf of the Franchisor, nor is the Franchisee authorized to create any obligation or enter into any contract binding on the Franchisor.
- 25.2. Operation of Southern Steer Business. The Franchisee will be totally and solely responsible for the operation of its Southern Steer Business, and will control, supervise and manage all the employees, agents and independent contractors who work for or with the Franchisee, including the right to hire and fire its employees. The Franchisee will be responsible for the acts of its employees, agents and independent contractors, and will take all reasonable actions necessary to ensure that its employees, agents and independent contractors comply with all federal, state and local laws, rules and regulations including, but not limited to, all discrimination laws, sexual harassment laws and laws relating to the disabled. The Franchisor will not have any right, obligation or responsibility to control, supervise or manage the Franchisee's employees, agents or independent contractors, and will no way be involved in the day-to-day operations of the Franchisee's 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, the franchisee is solely responsible for managing their employees. The FDD states that the franchisor has no obligation or responsibility to control, supervise, or manage the franchisee's employees, agents, or independent contractors. This extends to all aspects of employment, including hiring and firing decisions. The franchisee is also responsible for ensuring that all employees, agents, and independent contractors comply with all applicable federal, state, and local laws, rules, and regulations. This includes discrimination laws, sexual harassment laws, and laws relating to the disabled.
This means that as a Southern Steer franchisee, you have complete control over your staff. You are responsible for all employment-related decisions and for ensuring that your business complies with all relevant laws. This independence allows you to tailor your staffing to the specific needs of your location and business strategy. However, it also means that you bear the full responsibility for any legal issues or liabilities arising from your employees' actions.
Southern Steer's stance on employee management is typical in franchising, where franchisees are generally considered independent business owners. While Southern Steer provides the brand, system, and support, the franchisee manages the day-to-day operations, including staffing. This arrangement allows Southern Steer to focus on maintaining brand standards and developing the overall business model, while franchisees can focus on running their individual locations efficiently.
Prospective Southern Steer franchisees should carefully consider the implications of this independent contractor relationship. While it offers autonomy, it also requires a strong understanding of employment law and effective management practices. Franchisees should be prepared to invest time and resources in training, supervising, and managing their employees to ensure compliance and maintain a positive work environment.