Who is responsible for the costs associated with a replacement Designated Manager or Operating Principal attending the Southern Steer Initial Training Program?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Southern Steer Business must always be under the supervision of a Designated Manager or Operating Principal who has satisfactorily completed Our Initial Training Program (as the case may be). Any new Designated Manager or Operating Principal must attend Our Initial Training Program at Your sole cost and expense prior to being in charge of Your Southern Steer Business. You are solely responsible for the costs and expenses associated with a replacement Designated Manager or Operating Principal attending the Initial Training Program, including the then prevailing standard rates charged by Us for additional training and all travel and living expenses and compensation for such replacement Designated Manager or Operating Principal.
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs associated with a replacement Designated Manager or Operating Principal attending the Initial Training Program. This includes the standard training fees charged by Southern Steer at that time, as well as all travel, living expenses, and compensation for the replacement manager or principal.
This means that if a franchisee's initial Designated Manager or Operating Principal leaves the business and needs to be replaced, the franchisee will have to pay for the new manager's training. This can be a significant expense, as it includes not only the training fees but also the cost of travel, accommodation, and wages for the replacement during the training period. The Initial Training Program can last up to two weeks.
Franchisees should factor in this potential cost when budgeting for their Southern Steer franchise. It is important to have a plan in place for manager turnover and to understand the financial implications of training a replacement. This is a fairly standard practice in franchising, as the franchisee is responsible for the ongoing operation and staffing of their location, including ensuring that personnel meet the franchisor's training requirements.
Prospective franchisees should inquire about the current training fees for replacement managers and the estimated travel and living expenses to accurately budget for this potential expense. They should also ask about the frequency and location of the training programs to better plan for logistical considerations.