What is the FDIC insurance limit for Fat Shack's cash accounts as of December 31, 2024?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 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 means that Fat Shack maintained its cash balances within the coverage limits provided by the FDIC.
For a prospective franchisee, this information indicates that Fat Shack manages its cash in a way that ensures its deposits are protected up to the standard FDIC limit. This is a common practice for businesses to safeguard their cash holdings against bank failures. The statement also suggests that Fat Shack maintains its cash and cash equivalents with accredited financial institutions, which implies a degree of caution and diligence in managing its financial resources.
While this information pertains to Fat Shack's corporate accounts, it does not directly specify how franchisee cash accounts are handled. However, it is reasonable to expect that franchisees would also be advised to keep their cash balances within FDIC insurance limits to minimize risk. A prospective franchisee should confirm with Fat Shack what recommendations or requirements they have for franchisees regarding cash management and FDIC insurance.