Up to what amount are Deck Medic's U.S. noninterest-bearing transaction accounts 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 trans
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.
This means that Deck Medic's cash holdings in these specific accounts are protected by the FDIC up to the stated limit. Should the bank holding the funds fail, the FDIC would reimburse Deck Medic for any losses up to $250,000. This insurance provides a level of security for the company's liquid assets.
For a prospective Deck Medic franchisee, this information indicates that the franchisor is taking steps to protect its assets by utilizing FDIC-insured accounts. It also suggests that Deck Medic's cash balance did not exceed the FDIC insurance limits as of December 31, 2023 and 2022. Franchisees may want to inquire about the franchisor's cash management practices and ensure they are comfortable with how the company safeguards its funds.