What proof of ownership must the Franchisee provide to Southern Steer at the time of execution of the Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchisee is an entity, it will be dedicated solely to the operation of the Southern Steer Business and will not hold any interest in, operate, or manage any other businesses of any kind without the prior written approval of the Franchisor. At the time of execution of this Agreement, Franchisee will provide, and at any later time at Franchisor's request, Franchisee or Franchisee's Operating Principal will promptly provide Franchisor with satisfactory proof of Franchisee's ownership. Franchisee will allow no changes in the ownership structure of Franchisee's Southern Steer Business without Franchisor's prior written consent.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if the franchisee is an entity, they must provide satisfactory proof of ownership to Southern Steer at the time of executing the Franchise Agreement. Furthermore, Southern Steer can request proof of ownership from the franchisee or the franchisee's operating principal at any later time.
This requirement ensures that Southern Steer knows who owns and controls each franchise location. It also allows Southern Steer to verify that the franchisee is dedicated solely to operating the Southern Steer business, unless Southern Steer provides prior written approval for other business ventures. This is to ensure that the franchisee is focused on the success of the Southern Steer business.
For a prospective franchisee, this means being prepared to provide documentation such as articles of incorporation, operating agreements, or other organizational documents that clearly demonstrate ownership structure. It is also important to understand that any changes in ownership must be disclosed to and approved by Southern Steer, maintaining transparency and control within the franchise system.