Does the Southern Steer franchisor have any right to control the day-to-day operations of the franchisee's Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Responsibility for Operation of Franchisee's Southern Steer Business.
- i. Franchisee, its Operating Principal or its Designated Manager will be responsible for directly supervising Franchisee's Southern Steer Business. Franchisee has the sole right and responsibility for the manner and means by which the day-to-day operation of the Southern Steer Business is determined and conducted and for achieving its business objectives. Subject to any approval, inspection and enforcement rights reserved to Franchisor, this right and responsibility includes, without limitation, the employment, supervision and conditions of employment and discharge for Franchisee's employees, and independent contractors, safety concerns and the achievement of conformity with the Systems.
ii.
Franchisor's retention and exercise of the right to approve certain matters, to inspect the Southern Steer Business and its operation and to enforce its rights exists only to the extent necessary to protect Franchisor's interest in the System for the benefit of Franchisor, its Affiliates, other franchisees and licensees.
Neither the retention nor the exercise of such right is for the purpose of establishing any control, or the duty to take control, of Franchisee's Southern Steer Business nor will they be construed to do so.
- 18.3.
Operation of the Southern Steer Business.
In order to prevent any interruption of the Southern Steer Business which would cause harm to the Southern Steer Business, if Franchisee, the Operating Principal or Owner(s) are unable or fail to operate Franchisee's Southern Steer Business for a period of 45 days or longer for any reason whatsoever (except as provided in Section18.2, in which case the period is 15 days) Franchisee authorize Franchisor to appoint an interim manager to operate Franchisee's Southern Steer Business for so long as Franchisor deems necessary and practical.
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.
Nothing contained herein will be construed to require Franchisor to operate Franchisee's Southern Steer Business in the case of Franchisee's inability to operate same, and the rights set forth herein may be exercised in the sole and absolute discretion of Franchisor.
The Franchisee acknowledges and agrees that the Franchisor will at all times have unrestricted access to all Southern Steer Business records ("Southern Steer Business Records") with respect to customers, and other service professionals of, and/or related to, the Southern Steer Business including, without limitation, all databases (whether in print, electronic or other form), including all names, addresses, phone numbers, e-mail addresses, customer purchase records, and all other records contained in the database and all other Southern Steer Business Records created and maintained by the Franchisee are the sole property of the Franchisor.
- (h) Southern Steer Business Hours.
Franchisee's Southern Steer Business will be open during the hours specified in the Brand Manual.
During business hours, the Franchisee will have Management Staff on duty responsible for supervising the Southern Steer Business's employees and operations.
- (i) Personnel.
The Franchisee will have a sufficient number of adequately trained and competent personnel on duty to guarantee efficient service to the customers of the Southern Steer Business and operation of the Southern Steer Business.
The Franchisee will require its employees to meet the appearance standards and to wear the prescribed attire or uniforms described in the Brand Manual.
- (j) Operation of Other Businesses.
The Franchisee will use the Franchised Location solely for the operation of a Southern Steer Business and will not directly or indirectly operate or engage in any other business or activity from the Franchised Location.
- (k) Music and Music Selection.
The Franchisee will play only the music and music selections that have been approved by the Franchisor as set forth in the Manual or otherwise in writing.
- (m) Maintenance.
The Franchisee will, at its expense, repair and maintain the Southern Steer Business in a clean and sanitary condition consistent with the Franchisor's then-current operating standards and will replace all décor items and FF&E as they become worn-out, soiled or in disrepair.
Franchisee is prohibited from engaging in marketing, sales and promotional activities for Franchisee's Southern Steer Business outside the Protected Area without Franchisor's prior written approval.
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 have the right and responsibility for the day-to-day operations of their Southern Steer Business. Subject to the franchisor's approval, inspection, and enforcement rights, the franchisee is responsible for employment, supervision, conditions of employment, discharge of employees and independent contractors, safety concerns, and conformity with the System. The franchisor retains the right to approve certain matters, inspect the Southern Steer Business, and enforce its rights to protect its interest in the System. However, the retention or exercise of such rights is not for the purpose of establishing control, or the duty to take control, of the franchisee's Southern Steer Business.
However, there are some exceptions where Southern Steer may exert control over the franchisee's business. If the franchisee, operating principal, or owners are unable or fail to operate the Southern Steer Business for 45 days or longer, Southern Steer is authorized to appoint an interim manager to operate the Southern Steer Business. During this time, all revenue will be kept in a separate account, and the expenses of the business, including compensation for Southern Steer and its agents, will be charged to the account. Southern Steer will also retain 50% of gross revenues as a management fee.
Additionally, Southern Steer has the right to access all Southern Steer Business records related to customers and service professionals. The franchisee must operate the Southern Steer Business during the hours specified in the Brand Manual and have management staff on duty to supervise employees and operations. The franchisee must also have enough trained personnel to guarantee efficient customer service and operation of the business. The franchisee is responsible for ensuring employees meet appearance standards and wear prescribed attire or uniforms described in the Brand Manual. The franchisee must also use a security and fire monitoring system and maintain the Southern Steer Business in a clean and sanitary condition, replacing décor items and FF&E as needed.
Southern Steer also requires franchisees to play only music and music selections approved by the franchisor and to install the necessary equipment to play the approved music. Franchisees are prohibited from operating any other business from the franchised location or participating in any dual branding program without approval. Franchisees must disclose that they are an independent entity licensed by Southern Steer in all dealings with third parties. Franchisees are also prohibited from engaging in marketing, sales, and promotional activities outside their protected area without prior written approval from Southern Steer.