What happens if the Franchisee, Operating Principal, or Designated Manager fails to satisfactorily complete the Initial Training Program for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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9. FRANCHISEE DUTIES; OBLIGATIONS AND OPERATING STANDARDS
In addition to the other obligations set forth in other sections of this Agreement, Franchisee are required to do the following, and restricted from doing those things where noted: 9.1. Training. Franchisee or its Operating Principal and the Designated Manager will attend and successfully complete the Initial Training Program and any Additional Training that Franchisor may choose to offer. If Franchisee or its Operating Principal and the Designated Manager fail to satisfactorily complete the Initial Training Program, Franchisor may require Franchisee or its Operating Principal and the Designated Manager to re-take the Initial Training Program or portion thereof and pay the then current training fee, if any. Any Franchisee (or Operating Principal) or Designated Manager who does not successfully complete the required Initial Training Program to the Franchisor's satisfaction will not be permitted to participate in the operations of the Franchisee's Southern Steer Business.
9.2. Compliance with System Standards.
- (a) Quality and Service Standards. The Franchisor has developed and will continue to develop uniform standards of quality, cleanliness, service, and safety applicable to all Southern Steer Businesses, including the Franchisee's Southern Steer Business, to protect and maintain for the benefit of the Franchisor and all of its franchisees and developers the distinction, valuable goodwill and uniformity represented and symbolized by the Marks and the System.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if the Franchisee, Operating Principal, or Designated Manager does not satisfactorily complete the Initial Training Program, Southern Steer may require them to retake the program or a portion of it, and they may have to pay the then-current training fee. Furthermore, anyone who does not successfully complete the required Initial Training Program to Southern Steer's satisfaction will not be allowed to participate in the operations of the Southern Steer Business.
Southern Steer requires that the Franchisee or the Operating Principal and the Designated Manager successfully complete the Initial Training Program and be certified in writing by Southern Steer before the Southern Steer Business actually opens. If new Operating Principals and Designated Managers are appointed or hired after the Required Opening Date, they must attend the Initial Training Program within 45 days (or another time frame designated by Southern Steer) of their appointment or hiring. The franchisee will need to pay the current training fee for these replacement personnel.
Additionally, the FDD states that failure to satisfactorily complete the Initial Training Program prior to the Required Opening Date constitutes a default under the Franchise Agreement. In such a case, Southern Steer will send a Notice of Default, and the franchisee has 15 days to correct the default to Southern Steer's satisfaction. If the default is not corrected within this period, Southern Steer has the right to exercise its remedies, including termination of the Franchise Agreement.