As of December 31, 2023, 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, 2023, Anago had $1,381,558 in funds exceeding the Federal Deposit Insurance Corporation (FDIC) limit. The FDIC provides coverage up to $250,000 for substantially all depository accounts, meaning Anago held a significant amount of cash beyond this insured limit. This information is relevant to potential franchisees as it provides insight into the financial management and cash position of the company.
It's important to note that Anago also had funds within an investment brokerage account that are not insured through the FDIC program. As of December 31, 2023, the company had $54,207 in such accounts. The presence of uninsured funds, both in excess of FDIC limits and in investment accounts, suggests that Anago manages a substantial amount of capital.
Prospective franchisees should consider Anago's cash management practices as part of their due diligence. While holding funds in excess of FDIC limits is not inherently negative, it does mean that a portion of the company's cash reserves is not federally insured. This could be a point of discussion with the franchisor to understand their risk management strategies and the financial institutions they use.