What are the responsibilities of the Designated Manager for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ng all operational decisions with respect to Franchisee's Southern Steer Business. The Operating Principal will be required to execute the personal guaranty attached to this Agreement as Attachment C ("Personal Guaranty") and the Non-Competition and Non-Disclosure Agreement attached to this Agreement as Attachments J-1 and J-2.
- 4.2. Designated Manager. Prior attending the Initial Training Program, the Franchisee will designate an individual as the "Designated Manager." The Designated Manager will, during the entire period he or she serves as the Designated Manager, devote his or her full time and best efforts to the supervision, conduct and day to day operations of the Franchisee's Southern Steer Business. The Designated Manager must be approved by Franchisor; however, the Designated Manager does not have to have an ownership equity interest in Franchisee. The Designated Manager will be required to execute the Non-Competition and Non-Disclosure Agreement attached to this Agreement as Attachments J-1 and J-2.
- 4.3. Replacement Designated Manager. If during the Term of this Agreement or any Interim Period, the Designated Manager is not able or is not qualified to continue to serve in the capacity of Designated Manager, then the Franchisee will promptly notify the Franchisor in writing and will designate a duly qualified replacement Designated Manager within 30 days after the former Designated Manager ceases to serve in that capacity. The replacement Designated Manager will be required to satisfactorily complete the Initial Training Program, at Franchisee's sole cost and expense, and execute the Non-Competition and Non-Disclosure Agreement within the period required by Franchisor.
5. FRANCHISED LOCATION SELECTION; CONSTRUCTION; SIGNS; REMODELING
- 5.1. Franchised Location Site Selection. The Franchisee will be solely responsible for selecting the site of the Franchised Location for the Franchisee's Southern Steer Business. The Franchisor recommends that the Franchisee retain an experienced attorney to provide advice and counsel on the terms, conditions and economics of the legal and other documents required to lease or purchase the site for the Franchised Location.
- 5.2. Site Information.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Designated Manager is a key role in the operation of the franchise. Prior to attending the Initial Training Program, the franchisee must designate an individual as the Designated Manager. This individual is responsible for the supervision, conduct, and day-to-day operations of the Southern Steer Business, dedicating their full time and best efforts to these tasks. The Designated Manager must be approved by Southern Steer, but does not need to have an ownership stake in the franchise.
The Designated Manager is required to execute a Non-Competition and Non-Disclosure Agreement, indicating the importance of protecting Southern Steer's business interests and confidential information. If the Designated Manager is unable to continue in their role, the franchisee must notify Southern Steer and designate a qualified replacement within 30 days. The replacement Designated Manager must also complete the Initial Training Program at the franchisee's expense and execute the Non-Competition and Non-Disclosure Agreement.
Furthermore, the Franchisee, its Operating Principal or its Designated Manager will be responsible for directly supervising Franchisee's Southern Steer Business. Franchisee has the sole right and responsibility for the manner and means by which the day-to-day operation of the Southern Steer Business is determined and conducted and for achieving its business objectives. Subject to any approval, inspection and enforcement rights reserved to Franchisor, this right and responsibility includes, without limitation, the employment, supervision and conditions of employment and discharge for Franchisee's employees, and independent contractors, safety concerns and the achievement of conformity with the Systems.
In summary, the Designated Manager position is crucial for the daily functioning and oversight of the Southern Steer franchise. The role requires full-time commitment, adherence to brand standards, and protection of confidential information. The franchisee bears the responsibility of ensuring the Designated Manager is properly trained and qualified, and for promptly replacing them if necessary.