How are cash and cash equivalents recorded by Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Cash and Cash Equivalents—Cash equivalents include all short-term investments with an original maturity of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates their fair value.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the company's accounting policies state how cash and cash equivalents are recorded. Cash equivalents include short-term investments that have an original maturity of 90 days or less. Dq Treat records these cash and cash equivalents at cost, which the company states approximates their fair value.
This accounting practice means that Dq Treat values its liquid assets conservatively on its balance sheets. Prospective franchisees reviewing Dq Treat's financial statements should understand that the reported cash and cash equivalents reflect the original cost, which is considered a reasonable estimate of their current market value. This approach provides a straightforward and transparent view of the company's liquid assets.
It is important to note that while this policy provides a general overview, franchisees should consult with financial professionals to fully understand the implications of these accounting practices. Understanding how Dq Treat records its assets can help franchisees assess the financial health and stability of the company, which is crucial for making informed investment decisions.