What level of effort must be devoted to the operation of the Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM. 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You, Your Operating Principal (if You are a corporation, limited liability company, partnership, or other entity) or Your Designated Manager must, personally participate in the dayto-day management of Your Southern Steer Business. Your Designated Manager need not own an equity interest in the Southern Steer Business; however, your Operating Principal will own an equity interest. The Designated Manager must be approved by Us. We also recommend that You hire an assistant manager to assist in the day-to-day management of Your Southern Steer Business.
You or Your Operating Principal and Your Designated Manager must satisfactorily complete Our Initial Training Program, devote his/her best efforts to the operation of Your Southern Steer Business and not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise conflicts with Your obligations under the Franchise Agreement. At all times during the operation of Your Southern Steer Business, there must be at least one person who has completed Our Initial Training Program or is otherwise certified by Us to manage a Southern Steer Business. You are required to carefully monitor and be responsible for the performance of anyone designated to manage the operation of Your Southern Steer Business.
Each of Your owners, beneficial owners and You and Your beneficial owners' spouses must sign the personal guarantee attached to the Franchise Agreement as Attachment C personally guaranteeing and agreeing to perform certain obligations of the Franchisee under the Franchise Agreement. In addition, You, Your Designated Manager, Operating Principal and each of Your officers, owners, directors, employees and immediate family members who become aware of Our Confidential Information and Trade Secrets must sign the Non-Competition and Non-Disclosure Agreement attached to the Franchise Agreement as Attachments J-1 and J-2 before such individual is permitted to attend any training or gain access to Our Confidential Information and/or Trade Secrets.
ITEM. 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may only sell the food products, beverages, goods, and services specified or approved by Us. Selling food products, beverages, goods, and services that have not been specified or approved by Us is a material breach of the Franchise Agreement and, if not cured, is grounds for the termination of the Franchise Agreement. You must sell the food products, beverages, goods, and services that We require. We can change the food products, beverages, goods, and services that You must offer at Your Southern Steer Business. You are prohibited from using the Site for any purpose other than the operation of a Southern Steer Business.
Source: Item 15 — ITEM. 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees (or their Operating Principal or Designated Manager) must personally participate in the day-to-day management of their Southern Steer Business. The Designated Manager does not need to own equity in the business, but the Operating Principal must. Southern Steer must approve the Designated Manager. Southern Steer also recommends hiring an assistant manager.
The franchisee (or their Operating Principal or Designated Manager) must complete Southern Steer's Initial Training Program and devote their best efforts to the business. They cannot engage in other business activities that demand substantial time or conflict with their obligations under the Franchise Agreement. At least one person who has completed the Initial Training Program or is certified by Southern Steer must be present at all times during business operations. The franchisee is responsible for monitoring the performance of anyone managing the Southern Steer Business.
Furthermore, franchisees must faithfully, honestly, and diligently perform their obligations under the Franchise Agreement, including promoting and developing their Southern Steer Business in their protected territory. Franchisees must cooperate with Southern Steer, existing and prospective franchisees, and affiliates. They must also provide prompt, courteous, friendly, and efficient service to customers and adhere to high standards of honesty and ethical conduct. Maintaining a uniform image is essential, so franchisees must keep the location clean, ensure FF&E is in good condition, and only offer authorized products and services.