How does Beggars Pizza handle cash deposits exceeding federally insured limits?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Despite this practice, Beggars Pizza states 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 indicates that Beggars Pizza is aware of the risk associated with exceeding federally insured limits but considers the risk to be low based on their experience.

For a prospective franchisee, this means that Beggars Pizza may hold significant amounts of cash in its accounts, potentially exceeding the coverage provided by federal deposit insurance. While the company claims to have not experienced any losses, it is essential for franchisees to understand the potential risks involved. If a bank were to fail, the amounts exceeding the insured limits could be at risk.

It is important to note that this disclosure pertains to Beggars Pizza's handling of its own cash deposits and not necessarily the cash management practices required or recommended for individual franchisees. Franchisees should inquire about recommended cash handling procedures, including whether they are expected to maintain balances exceeding insured limits and what risk mitigation strategies are in place at the franchise level. Understanding these practices is crucial for assessing the financial stability and risk management approach of Beggars Pizza.