What was the net income before owner's compensation for the Southern Steer Sarasota location?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Imputed Fees | $112,929.38 | 5.19% | | Adjusted | $237,558.92 | | | Net | | | | Income | | | | Before | | | | Owner's | | | | Compensation | | | | Adjusted Net Profit Margin | | 10.93% |
CHART 5(A)
NET PROFIT FOR 2024 REPORTING PERIOD FRANCHISEE LOCATIONS
| Sarasota | Ocoee | Sarasota | Ocoee | |
|---|---|---|---|---|
| Total Gross Sales2 | $1,627,493.04 | $1,554,160.25 | 100% | 100% |
| Costs of Goods Sold | $882,875.47 | $845,111.00 | 54.25% | 54.38% |
| Gross Profit | $744,617.57 | $709,049.25 Amount | 45.75% Percentage of Gross Sales | 45.62% |
| Sarasota | Ocoee | Sarasota | Ocoee | |
| Labor | ||||
| Total Payroll (Hourly, | $128,128.85 | $195,740.45 | 7.87% | 12.59% |
| Manager, and Assistant | ||||
| Manager) | ||||
| Occupancy Costs | ||||
| Rent | $46,233.90 | $138,697.00 | 2.84% | 8.92% |
| Utilities | $24,862.53 | $22,449.23 | 1.53% | 1.44% |
| Repairs | $9,321.17 | $6,617.40 | 0.57% | 0.43% |
| and | ||||
| Maintenance | ||||
| Total Occupancy Costs | $80,417.60 | $167,763.63 | 4.94% | 10.79% |
| Marketing/Promotion | ||||
| Total | $45,593.01 | $13,221.50 | 2.80% | 0.85% |
| Marketing/Promotion | ||||
| Expenses | ||||
| Dues, | ||||
| Technology | ||||
| Fees, | ||||
| Subscriptions, | ||||
| Accounting | ||||
| and | ||||
| Payroll | ||||
| Processing, | ||||
| Computer | ||||
| Total | $8,588.34 | $10,671.29 | 0.53% | 0.69%% |
| Dues, | ||||
| Technology | ||||
| Fees, | ||||
| Subscriptions, | ||||
| Accounting and Payroll | ||||
| Processing Computer | Amount | Percentage of Gross Sales | ||
| Sarasota | Ocoee | Sarasota | Ocoee | |
| Supplies | ||||
| Total | $13,832.41 | $25,107.36 | 0.85% | 1.62% |
| Supplies | ||||
| Expenses | ||||
| Insurance | ||||
| Total | $15,721.37 | $12,685.07 | 0.97% | 0.82% |
| General | ||||
| Liability/Property | ||||
| Insurance/Workers | ||||
| Comp Insurance | ||||
| Miscellaneous | ||||
| Expenses | ||||
| Merchant | $24,266.48 | $24,476.95 | 1.49% | 1.57% |
| Services | ||||
| (Credit | ||||
| Cards)/Bank | ||||
| Fees | ||||
| Miscellaneous | $11,478.79 | $4,999 | 0.71% | 0.32% |
| Expenses | ||||
| Customer | $117,798.52 | $129,003.67 | 7.24% | 8.30% |
| Loyalty | ||||
| Program | ||||
| Total | $153,543.79 | $158,479.02 | 9.43% | 10.20% |
| Miscellaneous | ||||
| Expenses | ||||
| Total | $445,825.37 | $583,668.92 | 27.39% | 37.56% |
| Operating | ||||
| Expenses | ||||
| Franchise Fees | ||||
| Royalty Fees10 | $29,818.67 | $61,886.28 | 1.83% | 3.98% |
| Brand | $0 | $0 | 0% | 0% |
| Fund | ||||
| Contribution | ||||
| Total Franchise Fees | $29,818.67 | $61,886.28 | 1.83% | 3.98% |
| Net | $268,973.53 | $63,494.05 | ||
| In |
Source: Item 19 — ITEM. 19 FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 50–58)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Net Income Before Owner's Compensation for the Sarasota location was $268,973.53, which represents 16.53% of gross sales. This figure is calculated by deducting the Cost of Goods Sold, Total Operating Expenses, and Franchise Fees from the Gross Sales. It's important to note that this calculation does not include deductions for income taxes, payroll taxes, travel expenses, owner benefits, employee benefits, bonuses, amortization, interest payments, owner's compensation, and disability and health insurance. Therefore, this number represents the store's earnings before these additional expenses are taken into account.
Additionally, the Sarasota location had total gross sales of $1,627,493.04 with a cost of goods sold of $882,875.47. The gross profit for the location was $744,617.57. Total operating expenses amounted to $445,825.37, and franchise fees totaled $29,818.67. These figures provide a detailed breakdown of the revenues and expenses associated with the Sarasota Southern Steer location.
It is important to remember that these figures are based on historical information from a specific Southern Steer location and may not be representative of future performance or the performance of other locations. The FDD explicitly states that individual results may vary, and there is no assurance that a new franchisee will achieve similar financial outcomes. Prospective franchisees should carefully consider these figures in conjunction with other factors, such as location, market conditions, and their own management capabilities, when evaluating the potential profitability of a Southern Steer franchise.