Does Deer Solution's cash on deposit ever exceed the $250,000 limit insured by the FDIC?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
on its financial statements and has not yet selected a transition method. The Company determined that the new guidance has no impact on its financial operation as the entity doesn't have a lease.
3. CASH AND CASH EQUIVALENT
The Company maintains cash and cash equivalents with major financial institutions. The account is insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. On December 31, 2022, the Company's cash balance doesn't exceed the FDIC insurance limits.
The
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the company's cash balance did not exceed the FDIC insurance limits as of December 31, 2022. The FDD specifies that the company maintains cash and cash equivalents with major financial institutions, and these accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.
As of December 31, 2022, Deer Solution had approximately $45,017 in cash in its operating bank account. This amount is well below the FDIC insurance limit, indicating that all cash deposits were fully insured at that time.
It is important for a prospective franchisee to note that while the cash balance was below the insurance limit in 2022, this could change in subsequent years. Franchisees should inquire about Deer Solution's current cash management practices and ensure that the company maintains adequate FDIC insurance coverage for its deposits to mitigate any potential risk.