What was the amount of B Bops' uninsured cash balances as of December 31, 2024?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
of Credit Risk
The Company maintains its cash balances in one financial institution located in Urbandale, Iowa. The balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At December 31, 2024 the Company's uninsured cash balances t
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the company's uninsured cash balances totaled $292,855 as of December 31, 2024. B Bops maintains its cash balances in a single financial institution located in Urbandale, Iowa. These balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
This means that B Bops held a significant amount of cash that exceeded the FDIC insurance limit. While the initial $250,000 is protected by the FDIC, the remaining $292,855 was not insured.
For a prospective franchisee, this information is relevant because it provides insight into how B Bops manages its finances and cash flow. While it's not uncommon for businesses to have cash balances exceeding FDIC limits, it's important to understand the potential risks and the company's strategy for managing those risks. A franchisee might want to inquire about the reasons for maintaining such a high uninsured cash balance and what measures B Bops takes to mitigate any potential losses.