Does Belocal maintain its deposits in multiple financial institutions?

According to Belocal's 2025 Franchise Disclosure Document, Belocal maintains its deposits in one financial institution. While the company maintains its cash in a bank deposit account that at times may exceed federally insured limits, Belocal has not experienced any losses in such accounts and believes it is not exposed to any significant risk on cash or cash equivalents.

For a prospective franchisee, this means that Belocal's financial stability is tied to a single banking institution. While Belocal believes this poses no significant risk, it is important to consider the implications if that institution were to face financial difficulties.

Typically, franchisors may use multiple financial institutions to diversify risk and ensure access to funds. A prospective franchisee may want to inquire about Belocal's risk management strategies related to its cash deposits and the criteria it uses for selecting and monitoring its financial institution.