What does Bath Tune Up consider as cash in its financial statements?

According to Bath Tune Up's 2025 Franchise Disclosure Document, the company defines cash as both cash on hand and deposits held in banks.

This definition is important for prospective franchisees as it clarifies what Bath Tune Up includes when reporting its cash position in its financial statements. Understanding this definition helps franchisees interpret the company's financial health and liquidity accurately. Cash on hand typically refers to immediately available funds, while deposits in banks represent money held in checking and savings accounts.

Furthermore, the FDD notes that Bath Tune Up maintains some of its cash in U.S. noninterest-bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. As of December 31, 2022, the company's uninsured deposits in its deposit accounts with a U.S. bank totaled approximately $920,000. This indicates that Bath Tune Up had a significant amount of cash exceeding the FDIC insurance limit, which could present a risk, albeit minimal, to the company's cash holdings. Franchisees should be aware of how the company manages its cash and the potential risks associated with uninsured deposits.

In summary, Bath Tune Up's definition of cash encompasses both physical cash and bank deposits. The company's practice of holding a substantial amount in uninsured accounts is a point for potential franchisees to consider, although the FDD indicates management believes there is not significant credit risk exposure of the cash.