Up to what amount are Basecamp Fitness's cash and cash equivalents insured by the FDIC?
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.
While the funds exceed the insured limit, Basecamp Fitness does not believe that such deposits are subject to any unusual risk. This suggests that Basecamp Fitness has assessed the financial stability of the institutions where they hold cash and cash equivalents and have determined the risk of loss to be low.
For a prospective franchisee, this information indicates that Basecamp Fitness's cash management practices involve using financial institutions with FDIC insurance, which provides a level of security for deposits up to $250,000. However, franchisees should be aware that the company's cash balances may exceed this insured limit, though Basecamp Fitness believes the risk associated with these excess amounts is minimal.