For how long can the franchisor appoint an interim manager to operate the Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to prevent any interruption of the Southern Steer Business which would cause harm to the Southern Steer Business, if Franchisee, the Operating Principal or Owner(s) are unable or fail to operate Franchisee's Southern Steer Business for a period of 45 days or longer for any reason whatsoever (except as provided in Section18.2, in which case the period is 15 days) Franchisee authorize Franchisor to appoint an interim manager to operate Franchisee's Southern Steer Business for so long as Franchisor deems necessary and practical.
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 the 2025 Southern Steer Franchise Disclosure Document, Southern Steer can appoint an interim manager to operate the franchisee's business for as long as they deem necessary and practical. This action can be taken if the franchisee, operating principal, or owners are unable or fail to operate the Southern Steer business for a period of 45 days or longer for any reason. However, there is an exception: if the reason falls under Section 18.2, the period is shortened to 15 days.
In the event Southern Steer appoints an interim manager, all revenue generated during this period will be kept in a separate account. The expenses of the Southern Steer business, including reasonable compensation and expenses for Southern Steer and its agents, will be charged to this account. Additionally, Southern Steer will retain 50% of the gross revenues as a management fee.
It's important to note that Southern Steer is not obligated to operate the franchisee's business in case of their inability to do so. The decision to appoint an interim manager and operate the business is at the sole and absolute discretion of Southern Steer. This clause protects Southern Steer from potential losses or liabilities associated with a non-operational franchise, while also providing a mechanism to maintain the business's continuity.