Does Southern Steer require a Statement of Ownership to be completed as part of the franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
24. REPRESENTATIONS, WARRANTIES AND COVENANTS OF FRANCHISEE
Franchisee represents, warrants and acknowledges as follows:
- 24.1. Organization. If the Franchisee is a corporation, limited liability company, partnership or other entity, then the Franchisee and the Owners represent, warrant and covenant that:
- (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;
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 a corporation, limited liability company, partnership, or other entity, they must complete a Statement of Ownership. This statement, attached as Attachment B to the franchise agreement, requires the franchisee to accurately state and completely describe the names of the owners and their ownership interests in the franchise.
Southern Steer requires franchisees to maintain a current schedule of the owners and their ownership interests at all times. Franchisees must provide Southern Steer with a copy of the updated Ownership Statement whenever there is any change of ownership. This updated statement must include each owner's name, address, telephone number, and email address, as well as the percentage of ownership each owner holds in the franchise.
This requirement ensures that Southern Steer has accurate and up-to-date information about the ownership structure of each franchise. This allows Southern Steer to maintain clear records and communication channels with the appropriate individuals responsible for the franchise. It also helps Southern Steer monitor compliance with the franchise agreement and manage any potential conflicts of interest or transfer of ownership issues.