Where does Focus Cfo primarily hold its cash balances?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
The cash balances of the Company are held primarily in two financial institutions. If cash balances exceed the amounts covered by the Federal Deposit Insurance Corporation, the excess balances could be at a risk of loss. Management continually monitors its risks related to its cash balances. There were no losses incurred with respect to this concentration of credit risk.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the company's cash balances are primarily held in two financial institutions. This detail is part of the summary of significant accounting policies included in the financial statements. Cash and cash equivalents include cash in the bank and all highly liquid investments with maturities of three months or less.
For a prospective Focus Cfo franchisee, this information indicates that Focus Cfo manages its cash through established banking relationships. However, the FDD also notes a potential concentration of credit risk. If the company's cash balances exceed the coverage provided by the Federal Deposit Insurance Corporation (FDIC), the excess amounts could be at risk of loss.
Focus Cfo's management monitors these risks related to cash balances, and the FDD states that there were no losses incurred with respect to this concentration of credit risk. This suggests that Focus Cfo is aware of and actively manages its cash to mitigate potential risks associated with exceeding FDIC coverage limits. Franchisees may want to inquire about the specific institutions used and the company's strategy for managing these balances to ensure they are comfortable with the level of risk.