What is the interest rate on Southern Steer's secured bank line of credit?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
e company had no uninsured cash.
4. Line of Credit:
The company secured a line of credit, with a limit of $200,000. The principal balance carries interest daily at LIBOR + 2.95% (LIBOR at September 30, 2024 was 5.44%). At September 30,
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 has a secured bank line of credit. The principal balance carries interest daily at LIBOR + 2.95%. As of September 30, 2024, the LIBOR rate was 5.44%.
This means that the interest rate on the secured bank line of credit is variable and fluctuates with the LIBOR rate. A prospective franchisee should monitor changes to the LIBOR rate, as this will affect the amount of interest Southern Steer pays on its line of credit.
As of September 30, 2024, the company had a balance of $0 on the line of credit, but had a balance of $249 on September 30, 2023. The line of credit has a limit of $200,000.