What is the frequency with which a Southern Steer franchisee must furnish copies of all insurance policies to the franchisor?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires You to purchase and maintain in full force and effect insurance policies in such amounts and on such terms set out in the Brand Manual or as otherwise prescribed by Us. You must also purchase and maintain any other insurance required by any agreement related to the franchise business or by law. You must furnish Us with copies of all insurance policies at least annually, but not less than any time a change occurs with respect to the insurance policy or insurance coverage.
Source: Item 8 — ITEM. 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–24)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to provide copies of all insurance policies to Southern Steer at least annually. However, the FDD stipulates that Southern Steer franchisees must furnish copies of their insurance policies not less than any time a change occurs with respect to the insurance policy or insurance coverage.
This means that while the minimum requirement is once a year, Southern Steer requires more frequent updates if there are any changes to the franchisee's insurance coverage. This could include changes in policy limits, coverage types, or insurance providers. It is the franchisee's responsibility to ensure that Southern Steer always has up-to-date copies of their insurance policies.
This requirement is typical in franchising, as franchisors need to ensure that franchisees maintain adequate insurance coverage to protect the brand and the entire franchise system from potential liabilities. Franchisees should factor in the time and administrative effort required to comply with these insurance reporting requirements.