For a Southern Steer franchise, what expenses are included in 'Labor Costs'?

According to Southern Steer's 2025 Franchise Disclosure Document, 'Labor Costs' include wages for hourly employees, managers, and assistant managers. However, the labor costs do not include salaries for general managers or administrative staff. Additionally, payroll taxes or benefits, such as bonuses or insurance, are not included in the labor costs.

This definition is important for prospective franchisees as they evaluate the financial performance representations provided in Item 19 of the FDD. Understanding exactly what is included and excluded from 'Labor Costs' allows for a more accurate assessment of the potential operating expenses and profitability of a Southern Steer franchise. Franchisees should be aware that their actual labor costs may vary depending on their management structure and staffing needs.

The FDD also notes that a franchisee may elect to manage the day-to-day operations of the Southern Steer business with fewer employees. However, if the franchisee does not manage the daily operations or if business volume requires, additional hourly employees or a general manager may be necessary, which would impact labor costs. If a franchisee operates more than one Southern Steer business, they may also need one or more general managers, further affecting labor expenses. Therefore, it is crucial to consider these factors when projecting labor costs for a Southern Steer franchise.