Who has the right and responsibility for the day-to-day operation of the Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
sor. At the time of execution of this Agreement, Franchisee will provide, and at any later time at Franchisor's request, Franchisee or Franchisee's Operating Principal will promptly provide Franchisor with satisfactory proof of Franchisee's ownership. Franchisee will allow no changes in the ownership structure of Franchisee's Southern Steer Business without Franchisor's prior written consent.
(b) Responsibility for Operation of Franchisee's Southern Steer Business.
i. 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.
ii. Franchisor's retention and exercise of the right to approve certain matters, to inspect the Southern Steer Business and its operation and to enforce its rights exists only to the extent necessary to protect Franchisor's interest in the System for the benefit of Franchisor, its Affiliates, other franchisees and licensees. Neither the retention nor the exercise of such right is for the purpose of establishing any control, or the duty to take control, of Franchisee's Southern Steer Business nor will they be construed to do so.
(c) Working Capital. Franchisee will, at all times, maintain sufficient working capital to operate the Southern Steer Business and to fulfill its obligations under this Agreement, and will take steps to ensure availability of capital to fulfill the Franchisee's obligations to maintain, remodel and modernize the premises and operations of the Southern Steer Business as required by the provisions of this Agreement.
(d) Independent Entity. In all dealings with third parties including, without limitation, employees, suppliers, vendors, manufacturers, distributors, other franchisees and customers, Franchisee will disclose in an appropriate manner acceptable to Franchisor that Franchisee are an independent entity licensed by Franchisor. Any time Franchisee or its Operating Principal, Designated Manager or employees use their titles (e.g., president) it must be made clear that such person holds that position with Franchisee's entity and not with Franchisor.
(e) Management. Franchisee is prohibited from transferring, delegating, assigning or subcontracting Franchisee's obligations under this Agreement or the operation of Franchisee's Southern Steer Business to any third party or entity without Franchisor's prior approval.
(f) Guaranty.
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 franchisee has the sole right and responsibility for the day-to-day operations of the Southern Steer business. This includes determining how the business is run and achieving its objectives. The franchisee is also responsible for employment, supervision, conditions of employment, and discharge of employees and independent contractors, as well as safety concerns and ensuring conformity with Southern Steer's system.
However, Southern Steer retains the right to approve certain matters, inspect the business, and enforce its rights to protect its interest in the system. This oversight is for the benefit of Southern Steer, its affiliates, and other franchisees. The FDD clarifies that these rights are not intended to establish control over the franchisee's business operations.
In the event that the franchisee, operating principal, or owners are unable to operate the Southern Steer business for 45 days or longer, Southern Steer is authorized to appoint an interim manager. During this period, all revenue will be kept in a separate account, and business expenses, including compensation for Southern Steer and its agents, will be charged to this account. Southern Steer will also retain 50% of gross revenues as a management fee. This provision ensures the continuity of the business, but it's important to note that Southern Steer is not required to operate the business and may exercise this right at its discretion.