What does Corporate Cleaning Group consider to be cash equivalents?

According to the 2025 FDD, Corporate Cleaning Group defines cash equivalents as highly liquid investments with an original maturity of three months or less. This is a standard accounting practice, as these investments are easily convertible to cash and pose minimal risk to the company.

Corporate Cleaning Group also maintains deposits in a financial institution that, at times, exceed the coverage provided by the U.S. Federal Deposit Insurance Corporation (FDIC). However, Corporate Cleaning Group believes that there is no significant risk associated with these deposits. This indicates that Corporate Cleaning Group management is confident in the stability and creditworthiness of the financial institution they use.

For a prospective franchisee, understanding how Corporate Cleaning Group manages its cash and cash equivalents can provide insight into the company's financial management practices. While the FDD states that the company believes there is no significant risk with respect to deposits exceeding FDIC coverage, a franchisee may want to inquire about the specific financial institutions used and the company's risk management policies related to these deposits.