What amount of cash did Cream hold as of May 29, 2025?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
operates on a 52-/53-week fiscal year.
Under an Intercompany Trademark License Agreement with the Parent, the Company has a limited nonexclusive right to use the Licensed Marks in connection with its operations. As of May 29, 2025, the Company has not signed any franchise agreements.
Note 2 - Significant Accounting Policies
Basis of Presentation
The financial statement of the Company has been prepared on the basis of generally acc
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, as of May 29, 2025, Cream held $300,000 in cash. This figure represents the total amount of cash and cash equivalents the company had readily available at that specific point in time. Cash equivalents are defined as investments with an original maturity of three months or less. This indicates the company's short-term liquidity. Cream maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. However, Cream states that it has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks on cash or cash equivalents.
For a prospective Cream franchisee, this information provides insight into the financial health and stability of the company. A healthy cash balance suggests that Cream is managing its finances effectively and has sufficient resources to meet its short-term obligations. It also indicates that Cream is capable of supporting its franchisees and investing in the growth of the franchise system. The fact that Cream's cash holdings may exceed federally insured limits is a common practice for businesses, but it's important to note that Cream believes it is not exposed to any significant credit risks.
It is important to note that the financial statement was audited by an independent auditor, who expressed an opinion that the financial statement presents fairly, in all material respects, the financial position of Cream as of May 29, 2025, in accordance with accounting principles generally accepted in the United States of America. This provides additional assurance to prospective franchisees regarding the accuracy and reliability of the financial information.