What risk does Bft face due to holding cash balances in one financial institution?

According to Bft's 2025 Franchise Disclosure Document, Bft faces a concentration of credit risk because it holds its cash balances in one financial institution. Since these cash balances may exceed the coverage provided by the Federal Deposit Insurance Corporation (FDIC), there is a risk of loss for the excess balances.

For a prospective Bft franchisee, this means that a significant portion of Bft's cash assets could be at risk if the financial institution holding the funds were to fail. This could impact Bft's ability to meet its financial obligations, including providing support to franchisees.

While the FDD mentions this risk, it does not specify the exact amount of cash held in the financial institution or the extent to which it exceeds FDIC coverage limits. It is important for potential franchisees to understand the magnitude of this risk and how Bft plans to mitigate it. A prudent step would be for a prospective franchisee to inquire with Bft about their cash management practices, the amount of cash held at the institution, and any insurance or other safeguards in place to protect these funds.