What does Dog Haus consider to be cash equivalents?

According to Dog Haus's 2025 Franchise Disclosure Document, the company considers highly liquid investments with a maturity of three months or less to be cash equivalents. The document also states that as of December 31, 2024, and 2023, Dog Haus did not have any cash equivalents.

This definition is important for prospective franchisees because it clarifies how Dog Haus accounts for its liquid assets in its financial statements. Understanding this accounting policy can help franchisees better assess the company's financial health and stability. Cash equivalents are easily convertible to cash and are a key indicator of a company's ability to meet its short-term obligations.

The disclosure that Dog Haus had no cash equivalents as of the end of 2023 and 2024 might raise questions for potential franchisees. While not necessarily a negative sign, it could prompt further inquiry into the company's cash management practices and overall liquidity. It is common for businesses to have some level of cash equivalents for operational needs and unforeseen expenses.

Prospective franchisees should consider asking Dog Haus about the reasons for not holding cash equivalents during those periods and how the company manages its short-term liquidity needs. This information can provide a more complete picture of Dog Haus's financial strategy and risk management practices.