As of December 31, 2024, 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, 2024, Anago had $1,370,883 in funds exceeding the Federal Deposit Insurance Corporation (FDIC) limit. The FDIC insures up to $250,000 for substantially all depository accounts. Anago also had $329,552 in an investment brokerage account as of the same date, which is not insured through the FDIC program.
This information is relevant for prospective Anago franchisees because it provides insight into how Anago manages its cash and equivalents. The fact that Anago holds a significant amount of funds in excess of the FDIC limit suggests that the company has substantial cash reserves. However, it also means that a portion of their funds are not insured by the FDIC, which could pose a risk in the event of a bank failure.
It is important to note that the funds held in an investment brokerage account are also not FDIC insured, adding another layer of risk. While the FDD indicates that Anago places its accounts with high credit-quality financial institutions, prospective franchisees may want to inquire about Anago's risk management strategies and insurance coverage to protect these excess funds. Understanding how Anago protects its assets can help franchisees assess the financial stability and risk profile of the company.