factual

In what city and state does B Bops maintain its cash balances?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

ar period.

Note 4 Concentrations 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's 2025 Franchise Disclosure Document, the company maintains its cash balances in one financial institution located in Urbandale, Iowa. The document also notes that the balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of December 31, 2024, B Bops's uninsured cash balances totaled $292,855.

For a prospective franchisee, this information indicates where B Bops holds its funds and the extent to which those funds are insured. The fact that a significant portion of B Bops's cash balances exceeds the FDIC insurance limit could be a point of interest, though it is not necessarily a cause for concern. Many businesses hold cash balances above the insurance limit depending on their operational needs and financial management practices.

It is common for franchisors to maintain their cash balances in established financial institutions. Franchisees may want to inquire about the franchisor's cash management practices and the reasons for holding uninsured balances, if any, to better understand the company's financial strategies and risk management.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.