What was the total increase in member contribution for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
LLC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2022
| Cash Flows from Operating Activities: | ||
|---|---|---|
| Net Income (Loss) | $ (100,797) | |
| Adjustments to reconcile Net Income to Net Cash provided | ||
| by Operating Activities: | ||
| Amortization Expense | $ 2,678 | |
| (Increases) Decreases in Operating Assets: | ||
| Accounts Receivable | 2,256 | |
| Other current assets | (102,911) | |
| Increases/(Decreases) in Operating Liabilities: | ||
| Accounts Payable | 12,320 | |
| Line of Credit | (34,723) | |
| Payroll Liabilities | (533) | |
| Total Operating Adjustments | (120,913) | |
| Net Cash Used by Operating Activities | (221,710) | |
| Cash Flows from Financing Activities | ||
| Decrease Note Payable | (25,000) | |
| Increase Member Contribution | $675,000 | |
| Net Cash Provided by Financing Activities | 650,000 | |
| Change in Cash and Cash Equivalents | 428,290 | |
| Cash and Cash Equivalents as of October 1,2021 | (340) | |
| Cash an |
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 increase in member contribution was $675,000. This figure reflects the additional capital invested by the members or owners of the Southern Steer Franchising, LLC during the fiscal year. This contribution is a significant source of funding for the company's operations and growth.
For a prospective franchisee, this indicates the level of financial commitment from the existing members to support the Southern Steer business. A substantial increase in member contribution can be viewed positively, as it suggests confidence in the brand's potential and a willingness to invest in its future. However, it is essential to understand the context behind this increase.
Franchisees should inquire about the reasons for the increased member contribution. Was it used for expansion, operational improvements, or to cover losses? Understanding the purpose of these funds can provide valuable insights into the financial health and strategic direction of Southern Steer. It is also important to assess whether future capital infusions are anticipated and how they might impact the franchise system.
In summary, while the $675,000 increase in member contribution appears to be a positive sign of financial support, prospective Southern Steer franchisees should conduct thorough due diligence to understand the underlying reasons and potential implications for the franchise system's long-term stability and growth.