What does Cicis consider to be cash equivalents for the purpose of reporting cash flows?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Cash, cash equivalents and restricted cash: For purposes of reporting cash flows, cash, cash equivalents and restricted cash include highly liquid debt instruments purchased with an original maturity of three months or less. Cash balances exceeded federally insured limits at December 31, 2024 and 2023, and at various times throughout the year. The Company believes it is not exposed to any significant credit risk.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, when reporting cash flows, Cicis includes "highly liquid debt instruments purchased with an original maturity of three months or less" as cash equivalents and restricted cash. This definition is important for understanding Cicis's financial statements, as it clarifies which short-term investments are treated as cash.
For a prospective Cicis franchisee, this means that the cash flow statements will reflect these highly liquid, short-term investments as part of the company's cash position. This is a fairly standard accounting practice, as these instruments are easily convertible to cash and represent readily available funds.
It is also noted that cash balances exceeded federally insured limits at December 31, 2024 and 2023, and at various times throughout the year. However, Cicis believes it is not exposed to any significant credit risk.