According to Best Brains, what accounts are included in their definition of cash?

According to Best Brains' 2025 Franchise Disclosure Document, cash is defined as both interest-bearing and non-interest-bearing accounts held at financial institutions. Additionally, Best Brains considers highly liquid investments with an original maturity of three months or less from the purchase date to be cash equivalents. The carrying value of these cash equivalents is considered to be close to their fair market value.

For a prospective Best Brains franchisee, this definition is important because it clarifies how the company manages and reports its liquid assets. Understanding the composition of Best Brains' cash holdings can provide insights into its financial stability and liquidity. The inclusion of short-term investments in cash equivalents suggests a conservative approach to managing liquid assets, which could be reassuring to franchisees.

It is important to note that the FDD also mentions that Best Brains may hold cash deposits in financial institutions exceeding the amounts insured by federal government agencies. While the company states it places its cash with high credit quality financial institutions and had no balances exceeding insured limits as of December 31, 2023, this remains a potential risk factor for franchisees to consider. Prospective franchisees may want to inquire about Best Brains' policies for managing cash deposits and mitigating risks associated with uninsured amounts.