For C12 Group, what is the FDIC insurance limit for accounts at financial institutions?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| Weighted Average Remaining Lease Term (years) Operating leases | ||
|---|---|---|
| Weighted Average Discount Rate Operating leases The maturities of lease liabilities as of December 31, 2022 were as follows: | 0.06% | |
| 2023 | $ | 131,708 |
| 2024 | 131,708 | |
| 2025 | 32,926 | |
| 2026 | Thereafter | - - |
9. Concentration of Credit Risk of Financial Instruments
Financial instruments that potentially subject the Company to concentrations of credit risk consist of its cash balances at the banks if such balances exceed the amount insured by Federal Deposit Insurance Corporation (FDIC). Accounts at the institutions are insured by the FDIC up to $250,000. At December 31, 2022 and 2021, the cash balance at the Company's finan
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group's financial instruments are potentially subject to concentrations of credit risk if the company's cash balances at banks exceed the amount insured by the Federal Deposit Insurance Corporation (FDIC). The FDD states that accounts at financial institutions are insured by the FDIC up to $250,000.
As of December 31, 2022 and 2021, C12 Group's cash balance at its financial institution exceeded the FDIC limit by $1,695,701 and $425,733, respectively. Despite these excesses, C12 Group reports that it has not experienced any losses in these accounts and management believes the company is not exposed to any significant risk on its cash and cash equivalents.
For a prospective C12 Group franchisee, this information indicates that while C12 Group maintains significant cash balances that exceed FDIC insurance limits, the company has not historically suffered losses due to this concentration of credit risk. This may be a point of interest for franchisees to monitor as they assess the financial stability and risk management practices of C12 Group.