What was the total revenue from Southern Steer franchise fees in 2023?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
[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.]
NOTES TO THE FINANCIAL STATEMENTS September 30, 2024 and 2023
1. Summary of Significant Accounting Policies:
Nature of Business:
Southern Steer Franchising International, LLC (a Florida corporation), was formed February 4, 2020 to engage in the business of selling franchises in the locations approved by the Company within the United States of America. Under the terms of the franchise agreements, operate butcher shops providing prime beef, prepackaged meals and trainings on the art of preparing gourmet meals using prime cuts of beef. The franchisees conduct business under the trademark "Southern Steer Butcher".
Basis of Presentation:
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.
Revenue Recognition:
The sale of the initial franchise territory is earned over time, and is earned, when certain performance obligations are met.
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)
Based on the 2025 Southern Steer Franchise Disclosure Document, it is not possible to determine the total revenue from franchise fees for 2023. While the document discusses franchise fees, revenue recognition, and sales, it does not provide a specific total revenue figure for franchise fees for that year. The financial statements included in the FDD cover the years 2023 and 2024, but do not break down the revenue into specific categories such as franchise fees.
Southern Steer's FDD states that the company recognizes revenue from initial plan contracts in the month the franchisee opens its location. The initial franchise fee is $45,000, with a discounted fee of $30,000 for each additional location for clients investing in at least 3 locations. The FDD also mentions that the initial franchise fee and development fee will be deferred until Southern Steer has satisfied its pre-opening obligations, and the franchisee has commenced business operations.
A prospective franchisee should inquire directly with Southern Steer about the total franchise fee revenue for 2023 to gain a clearer understanding of the company's financial performance and revenue streams. Understanding the revenue from franchise fees can help potential franchisees assess the stability and growth of the franchisor.