What insurance requirements must Southern Steer Franchisees impose on their 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 protect the supplier, the franchisee, Southern Steer, and their respective management, agents, and employees. The coverage should address any losses, liabilities, claims, or expenses resulting from negligence or misconduct by the supplier or its employees while providing services or products to the franchisee's Southern Steer business or its customers.
This requirement ensures that Southern Steer and its franchisees are shielded from potential financial risks associated with supplier-related issues. By mandating that suppliers carry adequate insurance, Southern Steer aims to mitigate the impact of any negligence or wrongdoing on the part of the suppliers. This also protects the franchisee from potential legal and financial repercussions arising from supplier actions.
The specific amounts and terms of the required insurance policies are detailed in Southern Steer's Brand Manual. Prospective franchisees should carefully review the Brand Manual to understand the exact insurance requirements for suppliers and independent contractors. This will help them ensure compliance and protect their business interests. It is common practice in franchising to require suppliers to maintain insurance, but the specific requirements can vary significantly between franchise systems.