Are the cash balances held by Carbones Pizzeria always within federally insured limits?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's cash and cash equivalents may, at times, exceed federal insurance limits. This means that Carbones Pizzeria sometimes holds cash balances in its accounts that are greater than the amount insured by the federal government. However, the company states that it does not anticipate any losses related to these balances.

For a prospective franchisee, this indicates that Carbones Pizzeria manages its cash in a way that could expose some of its funds to risk if the financial institution holding the funds were to fail and the balances exceeded the insured limits. While the company anticipates no losses, it is still a potential risk factor to consider. It is important to note that this situation is not uncommon for businesses that handle significant amounts of cash.

It would be prudent for a potential Carbones Pizzeria franchisee to inquire about the company's cash management practices, including the specific financial institutions used, the typical cash balances maintained, and the measures taken to mitigate the risk of loss associated with balances exceeding federal insurance limits. Understanding these practices can help a franchisee assess the financial stability and risk management strategies of Carbones Pizzeria.