Up to what amount is Deck Medic's cash account insured by the FDIC?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
mined that it doesn't have any lease that meet the requirement to recognize a right-of-use asset and liability because the Company doesn't have any long-term leases.
3. CASH AND CASH EQUIVALENTS
The Company maintains its cash balance in U.S. noninterest-bearing transaction accounts which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. On December 31, 2023 and 2022, the Company's cash balance didn't exceed the FDIC insurance limits.
The Company considers all cash in the bank and investments in highly liquid debt instruments
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the company maintains its cash balance in U.S. noninterest-bearing transaction accounts. These accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
For a prospective Deck Medic franchisee, this means that the cash held in the company's bank accounts is protected up to $250,000 by the FDIC. This insurance provides a level of security for the company's funds in the event of a bank failure or other financial institution insolvency.
The 2024 FDD also notes that on December 31, 2023 and 2022, Deck Medic's cash balance did not exceed the FDIC insurance limits. As of December 31, 2023 and 2022 the Company had approximately $125,880 and $110,883 in cash in its operating bank account respectively. This indicates that the company's cash management practices keep the balances within the insured limits, further safeguarding the company's assets.