What does Bft consider to be cash equivalents?

According to Bft's 2025 Franchise Disclosure Document, the company considers "all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents." This definition is important for prospective franchisees as it clarifies how Bft manages and reports its liquid assets. Cash equivalents are easily convertible to cash and are a key component of a company's financial health.

For a potential Bft franchisee, understanding this definition helps in interpreting Bft's financial statements provided in the FDD. When reviewing the balance sheets and cash flow statements, franchisees can see how Bft classifies short-term investments. This can provide insights into the company's liquidity and its ability to meet short-term obligations.

It's worth noting that Bft holds its cash balances in one financial institution, and these balances may exceed the amounts covered by the Federal Deposit Insurance Corporation (FDIC). This concentration of credit risk means that amounts exceeding FDIC coverage could be at risk of loss, which is a factor for franchisees to consider when assessing the overall financial stability of Bft.