In how many financial institutions does Floors To Go maintain its cash deposits?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Cash consists of demand deposits in banks. The Company maintains its deposits in amounts which, at times, may exceed federally insured limits, in one local financial institution. Management does not believe the Company is exposed to any significant interest rate or other financial risk as a result of these deposits.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, Floors To Go maintains its cash deposits in one local financial institution. The disclosure notes that the company's deposits, at times, may exceed federally insured limits. However, Floors To Go's management does not believe the company faces significant interest rate or other financial risks because of these deposits.
For a prospective franchisee, this indicates that Floors To Go centralizes its banking activity. While the deposits may exceed insured limits, management believes the company is not exposed to significant risk.
It is common practice for franchisors to maintain cash deposits in one or more financial institutions. Prospective franchisees may want to inquire about the specific financial institution used by Floors To Go and the measures in place to protect deposits exceeding federally insured limits.