Who is required to sign the Personal Guaranty for a Southern Steer franchise?

According to the 2025 Southern Steer Franchise Disclosure Document, the requirements for signing a Personal Guaranty depend on the franchisee's business structure. If the franchisee is a corporation, partnership, limited liability company, or other entity, Southern Steer requires its officers, directors, shareholders, partners, members, managers, owners, and the spouses or domestic partners of the owners to sign a Personal Guaranty. This guaranty is included as Attachment C to the Franchise Agreement.

This requirement ensures that Southern Steer has recourse to the personal assets of the individuals controlling the franchisee entity in the event of a default or breach of contract. By requiring a broad range of individuals to sign the guaranty, Southern Steer aims to secure the financial obligations of the franchise. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.

For a prospective Southern Steer franchisee, this means that if you operate your franchise through a business entity, you and potentially your business partners, officers, and even your spouse or domestic partner will be personally liable for the franchise's financial obligations. It is important to carefully review the Personal Guaranty (Attachment C) with legal counsel to fully understand the extent of personal liability and the circumstances under which it may be invoked by Southern Steer.