What was the total value of Southern Steer's accounts receivable, territory in 2023?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
r 30, 2024 and 2023 BALANCE SHEETS
ASSETS
| 2024 | 2023 | ||
|---|---|---|---|
| Current assets: | |||
| Cash | $ 23,494 | $ 43,717 | |
| Accounts receivable | 9,879 | 1,615 | |
| Accounts receivable, territory | - | 20,000 | |
| Due from related party | - | 3,500 | |
| Total current assets | 33,373 | 68,8 |
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 value of accounts receivable, territory in 2023 was $20,000. This figure represents money owed to Southern Steer for franchise territories. Accounts receivable are considered current assets, which are assets expected to be converted to cash within one year.
For a prospective franchisee, understanding the accounts receivable can provide insight into the financial health and stability of Southern Steer. A high value of accounts receivable could indicate strong sales or delayed payments from franchisees. Conversely, a low value might suggest fewer sales or prompt payments.
It's important to note that accounts receivable are subject to potential losses if the debts are not collected. Therefore, franchisees should consider the quality of these receivables and the potential risk of uncollectible amounts when evaluating Southern Steer's financial condition. Reviewing the trend of accounts receivable over multiple years can also provide a more comprehensive understanding of the company's financial performance.