How soon after the death or disability of a Southern Steer franchisee must an interim manager be appointed?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
o 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. If within 15 days after the date of Franchisee's death, permanent disability, insanity, or appointment of a conservator or guardian, Franchisee or the estate, executor, administrator, conservator, or other personal representative will appoint an interim manager, who has been pre-approved by Franchisor, to operate Franchisee's Southern Steer Business until the rights to own Franchisee's Southern Steer Business have been assigned within the 180 day period referenced in this Section 18.2(b). If Franchisee or the estate, executor, administrator, conservator, or other personal representative fails to appoint an interim manager within 15 days, Franchisor may appoint one as set forth in Section 18.3.
- 18.3. Operation of the Southern Steer Business. In order to prevent any interruption of the Southern Steer Business which would cause harm to the Southern Steer Business, if Franchisee, the Operating Principal or Owner(s) are unable or fail to operate Franchisee's Southern Steer Business for a period of 45 days or longer for any reason whatsoever (except as provided in Section18.2, in which case the period is 15 days) Franchisee authorize Franchisor to appoint an interim manager to operate Franchisee's Southern Steer Business for so long as Franchisor deems necessary and practical.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, in the event of a franchisee's death, permanent disability, insanity, or the appointment of a conservator or guardian, the franchisee or their representative has 15 days to appoint an interim manager to operate the Southern Steer business. This interim manager must be pre-approved by the franchisor. This appointment is intended to maintain the business's operation while the rights to own the Southern Steer business are assigned within a 180-day period.
If the franchisee or their representative fails to appoint an interim manager within the initial 15-day period, Southern Steer has the option to appoint one themselves. This ensures that the business continues to operate smoothly and prevents any interruption that could harm the business.
In cases where the franchisee, operating principal, or owners are unable to operate the Southern Steer business for 45 days or longer for any reason, except in the aforementioned cases of death or disability (where the period is 15 days), Southern Steer is authorized to appoint an interim manager. During the period that the interim manager operates the business, all revenue is kept in a separate account, and business expenses, including compensation for Southern Steer and its agents, are charged to this account. Additionally, Southern Steer retains 50% of the gross revenues as a management fee. This arrangement ensures that Southern Steer can maintain control and profitability during the interim management period.