What happens to the revenue generated during the period an interim manager operates the Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 an interim manager is appointed to operate a Southern Steer franchise, all revenue generated during that period is kept in a separate account. This account is then used to cover the expenses of the business. These expenses include reasonable compensation and expenses for Southern Steer and its agents.
In addition to covering expenses, Southern Steer will retain 50% of the gross revenues as a management fee for overseeing the business during the interim management period. This means that the franchisee will not receive the full revenue generated during this time, as half of it will go to Southern Steer for their management services.
It's important to note that Southern Steer is not obligated to operate the franchise during the franchisee's inability to do so. The decision to appoint an interim manager and exercise these rights is at the sole discretion of Southern Steer. This arrangement ensures that the Southern Steer business can continue operating without interruption, while also compensating Southern Steer for its management efforts during the franchisee's absence.