What insurance requirements must a Southern Steer Franchisee impose on its suppliers and independent contractors?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee agrees to require each supplier and independent contractor with whom it contracts ("supplier") to procure and maintain in full force and effect, at the sole cost and expense of such suppliers, insurance policies, in such amounts and on such terms, as prescribed by the Franchisor in the Brand Manual, insuring the supplier and the Franchisee, the Franchisor, and their respective Executive Management, agents, and employees from and against any and all loss, liability, claim or expense of any kind whatsoever, arising from or as a result of any negligence or other wrongdoing by the supplier or its employees in providing services or products to the Franchisee, the Franchisee's Southern Steer Business or to any customer or invitee of the Southern Steer Business.
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 must ensure that their suppliers and independent contractors maintain specific insurance coverage. These insurance policies must be in full effect and at the supplier's sole expense. The policies must cover the supplier, the franchisee, Southern Steer, and their respective executive management, agents, and employees. The insurance should protect against any loss, liability, claim, or expense resulting from negligence or wrongdoing by the supplier or its employees while providing services or products to the franchisee, the Southern Steer business, or any customer or invitee of the Southern Steer business.
This requirement ensures that Southern Steer franchisees are protected from potential liabilities arising from the actions of their suppliers and contractors. By mandating specific insurance coverage, Southern Steer aims to mitigate financial risks and maintain brand integrity. The amounts and terms of the required insurance policies are detailed in the Brand Manual, which franchisees must adhere to.
For a prospective franchisee, this means carefully selecting suppliers and contractors who can meet these insurance requirements. It also implies a need to understand and comply with the insurance specifications outlined in the Brand Manual. Failing to ensure that suppliers have adequate insurance could expose the franchisee to significant financial liabilities, making due diligence in supplier selection crucial.