Who is required to personally participate in the day-to-day management of a Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 the 2025 Southern Steer Franchise Disclosure Document, either the franchisee, their Operating Principal, or a Designated Manager must personally participate in the day-to-day management of the Southern Steer business. If the franchisee is a corporation, limited liability company, partnership, or other entity, then their Operating Principal must participate. The Designated Manager does not need to have an equity interest in the Southern Steer business, but the Operating Principal must own an equity interest. The franchisor, Southern Steer, must approve the Designated Manager. Southern Steer also recommends hiring an assistant manager to help with daily operations.
The franchisee, Operating Principal, or Designated Manager must complete the Initial Training Program. They also must devote their best efforts to the operation of the Southern Steer business and not engage in any other business or activity that requires substantial management responsibility, time commitments, or conflicts with their obligations under the Franchise Agreement. At all times, at least one person who has completed the Initial Training Program or is certified by Southern Steer must manage the Southern Steer Business. The franchisee is responsible for monitoring the performance of anyone designated to manage the business.
This requirement ensures that someone with proper training and a vested interest is always actively managing the Southern Steer location. For a prospective franchisee, this means they must either be prepared to manage the business themselves, appoint a qualified Operating Principal with equity, or hire and train a Designated Manager approved by Southern Steer. The franchisee retains responsibility for the performance of the designated manager.