What is the Federal Deposit Insurance Company's (FDIC) insurance limit mentioned in Aw's financial statements?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
r this arrangement, franchisees are granted the right to operate a Papa Ray's Restaurant for a specified number of years.
Concentration of Credit Risk-Financial instruments that potentially expose the Company to concentration of credit risk primarily consist of cash and cash equivalents. The balances in the Company's cash accounts did not exceed the Federal Deposit Insurance Company's (FDIC
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the notes to the financial statements address the concentration of credit risk related to cash and cash equivalents. The document states that the balances in Aw's cash accounts did not exceed the Federal Deposit Insurance Company's (FDIC) insurance limit of $250,000. This means that Aw keeps its cash balances within the FDIC's insured limit, thereby minimizing risk.
For a prospective Aw franchisee, this indicates that Aw is managing its cash responsibly by ensuring its deposits are within the FDIC's insured limit. The FDIC insurance limit of $250,000 means that if the bank holding the funds were to fail, the deposits would be insured up to this amount. This is a standard practice for businesses to protect their cash assets.
This information is found within the summary of significant accounting policies in the notes to Rayyan Pizza Franchise LLC's financial statements. The company maintains its cash and cash equivalents with accredited financial institutions.