What was the ending cash balance for Fat Shack in 2024?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
s and transactions have been eliminated in consolidation.
Concentration of Credit Risk - Financial instruments that potentially expose the Company to concentration of credit risk primarily consist of cash and cash equivalents. The balances in the Company's cash accounts as of December 31, 2024 did not exceed the Federal Deposit Insurance Company's (FDIC) insurance limit of $250,000. The Company maintains its cash an
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the balances in the company's cash accounts as of December 31, 2024, did not exceed the Federal Deposit Insurance Company's (FDIC) insurance limit of $250,000. This indicates that Fat Shack maintained cash balances within the insured limits provided by the FDIC as of the end of 2024.
For a prospective franchisee, this information provides insight into Fat Shack's cash management practices. It suggests that the company is aware of and adheres to FDIC insurance limits, which is a common practice to protect its cash holdings. This can be seen as a sign of responsible financial management.
However, the document does not specify the exact cash balance. A potential franchisee may want to inquire about the specific amount of cash and cash equivalents Fat Shack held at the end of 2024 to gain a clearer understanding of the company's liquidity position. This information can be crucial in assessing the financial health and stability of the franchisor.