As of September 30, 2024 and 2023, did Southern Steer have any uninsured cash?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ptember 30, 2024.
3. Concentrations of Credit Risk:
The company keeps a majority of its cash with a financial institution that insures cash balances of up to $250,000 through the Federal Deposit Insurance Corporation (FDIC). At different times of the year, the balance may exceed this amount. At Septem
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 Southern Steer's 2025 Franchise Disclosure Document, the company did not have any uninsured cash as of September 30, 2024, and September 30, 2023. The company keeps the majority of its cash in a financial institution insured by the Federal Deposit Insurance Corporation (FDIC), which covers cash balances up to $250,000.
While Southern Steer's cash balances may exceed the FDIC insured limit at various times throughout the year, the company's financial statements indicate that they maintained balances within insured limits at the close of the fiscal years 2023 and 2024.
This information is relevant to potential franchisees as it provides insight into Southern Steer's cash management practices and the security of its funds. Knowing that the company did not hold uninsured cash at the end of the last two fiscal years may give franchisees confidence in the company's financial prudence.