What is the subject of Note C in Fly To Fit's financial statements?

According to Fly To Fit's 2024 Franchise Disclosure Document, Note C of the company's financial statements pertains to concentrations of risk. Specifically, it addresses the credit risk associated with the company's cash and cash equivalents. Fly To Fit mitigates this risk by placing its cash and cash equivalents in a limited number of high-quality financial institutions. The company also ensures that the deposits do not exceed the amount of insurance coverage provided.

For a prospective franchisee, this information indicates how Fly To Fit manages its financial resources and protects itself from potential losses related to cash holdings. Knowing that the company prioritizes placing funds in secure institutions and adhering to insurance limits can provide reassurance about the company's financial management practices. This is a common practice, as businesses typically aim to minimize risk by diversifying their financial holdings and ensuring adequate insurance coverage.

It is important to note that this disclosure focuses solely on credit risk related to cash and cash equivalents. Other potential risks, such as market risk or operational risk, are not addressed in this particular note. Franchisees should consider this information in conjunction with other sections of the FDD and conduct their own due diligence to assess the overall risk profile of investing in a Fly To Fit franchise.