Does Bang Cookies maintain cash and cash equivalents with major financial institutions?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
n twelve months. The Company has evaluated the impact of this standard on its financial statements and determined that it doesn't have any lease that meet the requirement to recognize a right-of-use asset and liability because the Company doesn't have any long-term leases.
3. CASH AND CASH EQUIVALENTS
The Company maintains its cash balance in U.S. noninterest-bearing transaction accounts which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. On December 31, 2023 the Company's cash balance might exceed
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the company maintains its cash balance in U.S. noninterest-bearing transaction accounts. These accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. As of December 31, 2023, Bang Cookies had approximately $11,323 in cash in its bank accounts; however, the company's cash balance might exceed the FDIC insurance limits.
For a prospective franchisee, this means that Bang Cookies holds its cash in standard bank accounts that are insured by the FDIC. The FDIC insurance protects deposits up to $250,000, which is a common practice to safeguard funds. However, Bang Cookies' cash balance may exceed this limit, indicating that some funds could be uninsured.
It is important to note that the cash and cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less. This is a standard accounting practice to classify highly liquid assets as cash equivalents. Franchisees may want to inquire about Bang Cookies' strategy for managing cash balances above the FDIC insurance limit to ensure the company is taking appropriate measures to protect its assets.