What is the role of the Designated Manager in the operation of the Southern Steer Business?
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. The Franchisee will provide to the Franchisor the information specified by the Franchisor in writing for the proposed site ("Site Information"). The Franchisor will have the right to require that the Franchisee obtain, at the Franchisee's expense, an economic feasibility study for the proposed site for the Franchised Location.
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 plays a crucial role in the daily operations 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 unlike the Operating Principal, they do not need to have an ownership equity interest in the franchise. The Designated Manager is also required to sign a Non-Competition and Non-Disclosure Agreement.
If the Designated Manager is unable or unqualified to continue in their role during the term of the agreement, the franchisee must promptly notify Southern Steer and designate a qualified replacement within 30 days. The replacement Designated Manager must satisfactorily complete the Initial Training Program at the franchisee's expense and execute the Non-Competition and Non-Disclosure Agreement within the period required by Southern Steer. This ensures that the replacement manager is adequately trained and bound by the necessary confidentiality and non-competition terms.
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.
Any Designated Manager who does not successfully complete the required Initial Training Program to the Southern Steer's satisfaction will not be permitted to participate in the operations of the Franchisee's Southern Steer Business. During business hours, the Franchisee will have Management Staff on duty responsible for supervising the Southern Steer Business's employees and operations.