At which commercial bank does Hydrodog maintain its cash balances?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ults could differ from these estimates.
Concentration of Credit Risk Arising From Cash Deposits in Excess of Insured Limits:
The Company maintains cash balances at one commercial bank. The Company's bank balance can at times exceed the FDIC insured deposit limit of $250,000 per financial institution. The
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the company maintains its cash balances at one commercial bank. The document indicates that Hydrodog's bank balance may, at times, exceed the FDIC insured deposit limit of $250,000 per financial institution. However, Hydrodog states that it has not experienced any losses in this account through the date when the financial statements were available to be issued.
For a prospective franchisee, this means that Hydrodog handles its finances through a single bank, which could simplify financial oversight and transactions between the franchisee and franchisor. However, the FDD does not disclose the name of this bank.
It is important to note that while Hydrodog has not experienced any losses, there is still a potential risk since the cash balances can exceed the FDIC insurance limit. A prospective franchisee may want to inquire about the specific bank Hydrodog uses and the measures in place to mitigate risks associated with balances exceeding the insured limit. This information is not provided in the excerpt.