What does Floors To Go consider as cash for financial reporting purposes?

According to the 2025 Floors To Go Franchise Disclosure Document, cash is defined as demand deposits in banks and cash on hand. This definition is important for prospective franchisees as it dictates how the company accounts for its liquid assets in its financial statements. Understanding this definition helps franchisees interpret the financial health and stability of Floors To Go.

Floors To Go maintains cash balances that, at times, may exceed federally insured limits. However, the company's management does not believe that Floors To Go is exposed to any significant interest rate or other financial risk as a result of these deposits. This indicates that while the company holds substantial cash reserves, it is aware of and actively manages the associated risks.

For a prospective franchisee, this information provides insight into Floors To Go's financial management practices. Knowing how the company defines and manages its cash positions can offer a degree of confidence in its financial stability and risk management capabilities. This is a common accounting practice, but it is always good to confirm with the franchisor that they are following standard accounting procedures.