What does Beggars Pizza consider to be cash equivalents?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the company considers "all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents." This definition is important for understanding Beggars Pizza's financial statements, as it clarifies how the company categorizes its most liquid assets.

For a prospective franchisee, understanding this definition is crucial because it provides insight into how Beggars Pizza manages and reports its cash flow. Cash equivalents are readily convertible to cash and are a key indicator of the company's short-term liquidity. This can be a useful metric when evaluating the financial health and stability of the franchisor.

The FDD also states that Beggars Pizza maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. However, the company reports that it has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash deposits. This provides some reassurance, but franchisees may still want to inquire about the specific banks used and the amounts held in each to assess any potential risk, however minimal.