What legal documents are required to transfer a Southern Steer franchise agreement to a beneficiary?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
upon written request;
(f) The names of the Owners of the Franchisee and their Ownership Interests in the Franchisee are accurately stated and completely described in the Statement of Ownership attached as Attachment B;
(g) The Franchisee will at all times maintain a current schedule of the Owners of the Franchisee and their Ownership Interests, and the Franchisee will immediately provide the Franchisor with a copy of the updated Ownership Statement whenever there is any change of Ownership. The Ownership Statement will contain the name, address, telephone number and e- mail address of each Owner of the Franchisee and will state the percentage of Ownership that each Owner has in the Franchisee;
(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;
(j) Each of the Franchisee's Owners will execute the Personal Guaranty attached hereto as Attachment C and the Non-competition and Non-Disclosure Agreement attached hereto as Attachment I-1;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, transferring ownership requires specific legal documents to be executed. If an owner of the Southern Steer franchise ceases to be an owner, or a new owner is added, Southern Steer requires the new owner to execute all documents then required by the franchisor. The franchisee's organizational documents must also state that no ownership interest can be assigned or transferred unless it strictly complies with the terms and conditions of the franchise agreement.
In the event of a transfer, the transferee's owners and designated manager must sign a Non-competition and Non-Disclosure Agreement, if required by Southern Steer. The transferee and all of the transferee's owners must also execute agreements required by Southern Steer to document the transfer, including a Personal Guaranty. These measures ensure that the new owner is legally bound to the same standards and obligations as the original franchisee.
Southern Steer also requires that any transfer of the Southern Steer business or its major assets include a transfer of the franchise agreement to the transferee; failure to do so constitutes a wrongful termination of the agreement. Furthermore, any transfer permitted by the agreement will not be effective until Southern Steer receives a completely executed copy of all transfer documents and consents to the transfer in writing. These stipulations protect Southern Steer's interests and ensure that any new operator meets their standards and is fully compliant with the franchise agreement.