Which sections of the Southern Steer franchise agreement still apply when transferring to a beneficiary?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
iary must agree to be unconditionally bound by the terms and conditions of this Agreement and must successfully complete the Initial Training Program. There will be no charge to the Beneficiary for attending the Initial Training Program; however, the Salary and Benefits and the Travel Expenses of the Beneficiary must be paid by the Beneficiary. Notwithstanding the forgoing, if this Agreement is Transferred to a Beneficiary, the Franchisee must pay the Franchisor $1,000 prior to the Transfer for legal expenses incurred by Franchisor to prepare transfer documents.
- (b) Failure to Transfer to Beneficiary. If the Beneficiary is unable to meet the conditions of Section 18.2(a), Franchisee or its estate, executor, administrator, conservator or other personal representative will have a reasonable time, not to exceed 180 days, from the date of such death, permanent disability, insanity, or appointment of a conservator or guardian, to dispose of Franchisee's interest, subject to the conditions set out in Section 18.5. Failure to so dispose of Franchisee's interest within 180 days will constitute a breach of this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a beneficiary is unable to meet the conditions outlined in Section 18.2(a), the franchisee or their estate has a 180-day period to dispose of the Southern Steer franchise interest, subject to the conditions set out in Section 18.5. Failure to dispose of the franchise within this timeframe constitutes a breach of the agreement.
Within 15 days of the franchisee's death, permanent disability, insanity, or appointment of a conservator or guardian, an interim manager, pre-approved by Southern Steer, can be appointed to operate the Southern Steer business until the franchise rights are assigned within the 180-day period. If no interim manager is appointed within 15 days, Southern Steer may appoint one as detailed in Section 18.3.
These stipulations ensure business continuity and adherence to Southern Steer's standards even during unforeseen circumstances affecting the franchisee's ability to manage the business. It is important for prospective franchisees to understand these conditions and discuss any concerns with Southern Steer before entering into the franchise agreement.