What is the FDIC insurance limit for cash maintained in financial institutions by Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ount, and disburse funds from the franchise capital account to fund any loan or advance made in accordance with the base indenture.
3. Contingencies
Legal
The Company is subject to various claims, legal proceedings and investigations covering a wide range of matters that may arise in the ordinary course of business. Management believes the resolutions of claims and pending litigation w
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company maintains cash in major financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. However, Basecamp Fitness maintains balances in excess of these limits. The company does not believe that such deposits are subject to any unusual risk.
For a prospective franchisee, this means that while Basecamp Fitness uses major financial institutions, the amount of cash they hold may exceed the standard FDIC insurance coverage. This is a common practice for larger companies that handle significant amounts of cash. While Basecamp Fitness believes these deposits are not subject to unusual risk, it is important for potential franchisees to understand that amounts exceeding $250,000 are not FDIC insured.
This information is part of the company's broader financial statements and risk disclosures. Franchisees should consider this information in the context of Basecamp Fitness's overall financial health and risk management practices. It is advisable to consult with a financial advisor to assess the implications of these practices.