What specific insurance requirements must the Southern Steer franchisee adhere to, as referenced in Section 17?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
17. INSURANCE; INDEMNIFICATION
17.1. Franchisee's Insurance.
(a) Insurance Policies. The Franchisee must, at its expense, procure and maintain in full force and effect insurance policies, in such amounts and on such terms, as prescribed below or by the Franchisor in the Brand Manual, by an insurance company which is acceptable to and approved by the Franchisor at all times during the Initial Term of this Agreement and any Interim Period, licensed in the state where coverage is provided, and carries an A.M. Best rating of at least A-VII. The Franchisee must obtain such policies before opening the Southern Steer Business. The Franchisee must also procure and pay for all other insurance required by state or federal law, including, without limitation, workers' compensation and unemployment insurance. Nothing in this Agreement will prevent the Franchisee from purchasing insurance with coverage amounts in excess of the coverage amounts required by the Franchisor.
- (b) Coverage.
Insurance policies must insure the Franchisee, the Franchisor, and their respective Affiliates, officers, stockholders, directors, and all other parties designated by the Franchisor, as additional named insureds against any liability that may accrue against them by reason of the ownership, maintenance or operation by Franchisee of the Southern Steer Business.
- (c) Requirements.
The policies must also stipulate that the Franchisor will receive a 30-day prior written notice of cancellation, non-renewal, or elimination, and must contain endorsements by the insurance companies waiving all rights of subrogation against the Franchisor.
Original or duplicate copies of all insurance policies, certificates of insurance, or other proof of insurance acceptable to the Franchisor, including original endorsements affecting the coverage required by this Section, must be furnished to the Franchisor by the Franchisee, together with proof of payment, prior to the opening of the Southern Steer Business.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees must secure and maintain insurance policies throughout the term of the agreement. These policies must be obtained from an insurance company acceptable to Southern Steer, licensed in the state where coverage is provided, and holding an A.M. Best rating of at least A-VII. These policies must be in place before the Southern Steer Business opens. Franchisees are also responsible for procuring and paying for any other insurance required by state or federal law, including workers' compensation and unemployment insurance. Franchisees can purchase insurance with coverage amounts exceeding the minimums required by Southern Steer.
The required insurance policies must cover the franchisee, Southern Steer, their affiliates, officers, stockholders, directors, and any other parties designated by Southern Steer as additional named insureds. This coverage protects against any liability that may arise from the franchisee's ownership, maintenance, or operation of the Southern Steer Business.
The insurance policies must stipulate that Southern Steer receives a 30-day prior written notice of cancellation, non-renewal, or elimination of coverage. The policies must also include endorsements from the insurance companies waiving all rights of subrogation against Southern Steer. Franchisees must provide Southern Steer with original or duplicate copies of all insurance policies, certificates of insurance, or other acceptable proof of insurance, including original endorsements, along with proof of payment, before opening their Southern Steer Business.