Does Bumper Man consider cash accounts subject to withdrawal restrictions or penalties as cash equivalents?

Based on the 2025 Bumper Man FDD, there is no specific mention of whether cash accounts subject to withdrawal restrictions or penalties are considered cash equivalents. However, Note D in Item 23 discusses the company's concentration of credit risks, stating that Bumper Man maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The company reports that it has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Because the FDD does not define 'cash equivalents' or address the treatment of accounts with withdrawal restrictions, it is unclear whether such accounts would be classified as cash equivalents by Bumper Man.

A prospective franchisee should seek clarification from Bumper Man regarding their specific accounting policies related to cash equivalents and whether accounts with withdrawal restrictions or penalties are included in that classification. This information is essential for understanding the company's financial reporting practices and assessing potential risks associated with cash management.