What happens if a person ceases to be one of the Southern Steer franchisee's owners?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
(h) If any person or entity ceases to be one of the Franchisee's Owners, or if any individual or entity becomes an Owner of the Franchisee, then the Franchisee will notify the Franchisor in writing and within five business days the Franchisee will require the new Owner to execute all documents then required by the Franchisor;
(i) The Franchisee's Organizational Documents and any documents representing Ownership in the Franchisee will provide that no Ownership Interest in the Franchisee may be assigned or transferred to any person or entity unless it is in strict compliance with the terms, conditions and restrictions contained in this Agreement;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if a person ceases to be one of the franchisee's owners, the franchisee must notify Southern Steer in writing. This notification must occur within five business days of the change in ownership.
Furthermore, the franchisee is obligated to ensure that any new owner executes all documents required by Southern Steer at that time. This requirement ensures that all owners are bound by the agreements and obligations set forth by Southern Steer.
Southern Steer also requires that the franchisee's organizational documents and any documents representing ownership specify that no ownership interest in the franchisee can be assigned or transferred unless it strictly complies with the terms, conditions, and restrictions outlined in the franchise agreement. This provision aims to maintain control over who becomes an owner and ensures adherence to the franchise's standards and requirements.