For the Southern Steer franchise, what year will the full financial statement presentation be phased in?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Under FTC Rule 436 (Franchise Rule) the financial statements are presented in comparative format covering two years of balance sheets and three years of statements of income and Stockholders' equity and cash flows for the periods included. This is the company's second year of operations and the full presentation will be phased in next year. The audit completed for the year ended September 30, 2022 was audited by other auditor's and is included separately.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the company's financial statements are presented in a comparative format covering two years of balance sheets and three years of statements of income, stockholders' equity, and cash flows. This presentation adheres to FTC Rule 436 (Franchise Rule).
Southern Steer's second year of operations was the year ended September 30, 2022. The FDD states that the full financial statement presentation will be phased in the following year.
Therefore, prospective Southern Steer franchisees can anticipate a full financial statement presentation starting in the subsequent year, which would be the financial statements for the year ending September 30, 2023.