What does Annex Brands consider to be cash equivalents?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company considers all highly liquid debt instruments purchased with maturities of three months or less to be cash equivalents. Cash equivalents as of September 31, 2024 and 2023 were $9,929,000 and $8,895,000, respectively.
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the company defines cash equivalents as highly liquid debt instruments that are purchased with maturities of three months or less. Cash equivalents totaled $9,929,000 as of September 30, 2024, and $8,895,000 as of September 30, 2023.
This definition is important for prospective franchisees because it clarifies how Annex Brands manages and reports its liquid assets. Understanding the composition of cash equivalents can provide insight into the company's financial stability and its ability to meet short-term obligations.
For a potential Annex Brands franchisee, this information offers a glimpse into the company's financial management practices. Knowing that Annex Brands focuses on highly liquid, short-term investments for its cash equivalents suggests a conservative approach to managing its finances. This can be reassuring for franchisees who are considering investing in the brand, as it indicates a lower risk of the company facing immediate liquidity issues.