As of December 31, 2022, how much did Anago have in funds exceeding the FDIC limit?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
s of $400,000 with an estimated cost of the territory of $98,000 for a gain on sale of the territory assets of EHLB, Inc. dba Anago of Las Vegas of $302,000 which has been recorded as other income on the consolidated statement of operations. As EHLB, Inc. dba Anago of Las Vegas operations will not continue in future periods the revenue and expenses of the entity have been reclassed and reported with "other income and expenses". Net income (loss) for EHLB, Inc. dba Anago of Las Vegas for the years ended December 31, 2024 and 2023 totaling ($34,405) and $317,735, respectively, have been reclassed to other income (expenses) for compari
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, as of December 31, 2022, Anago had $660,503 in funds exceeding the FDIC limit. The document also notes that the Federal Deposit Insurance Corporation (FDIC) offers coverage up to $250,000 for substantially all depository accounts. This indicates that Anago maintains a significant amount of cash in accounts that exceed the standard FDIC insurance coverage.
For a prospective franchisee, this information is relevant for assessing the financial stability and cash management practices of Anago. While it's common for larger companies to have cash balances exceeding FDIC limits, it's important to understand how Anago manages and mitigates the risk associated with these uninsured funds. This could involve spreading the funds across multiple institutions or utilizing other risk management strategies.
In addition to the funds exceeding the FDIC limit, Anago also had funds within an investment brokerage account totaling $191,769 as of December 31, 2022. The FDD states that these funds are not insured through the FDIC program. It would be prudent for a potential franchisee to inquire about the types of investments held in this brokerage account and the associated risks, as these investments are subject to market fluctuations and are not government-insured.