What does restricted cash consist of for The C12 Group?

Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify what "restricted cash" consists of for The C12 Group. The document does mention cash balances and cash equivalents, defining cash equivalents as highly liquid investments with original maturities of three months or less. It also notes that the company's cash balances at banks may exceed the amount insured by the FDIC, with specific figures provided for 2022 and 2021. However, there is no explicit mention or definition of "restricted cash" within these excerpts.

For a prospective C12 Group franchisee, understanding the nature of any restricted cash is crucial. Restricted cash typically refers to funds that are set aside for a specific purpose and are not available for general use by the company. This could impact the company's liquidity and financial flexibility.

To gain clarity, a potential franchisee should directly ask The C12 Group's franchisor for a detailed explanation of what constitutes "restricted cash" within their financial statements. This inquiry should cover the specific purposes for which the cash is restricted, the amounts involved, and any implications for the franchisee's investment or the franchisor's financial stability.