Has Hydrodog experienced any losses in its bank account where the balance exceeded the FDIC insured limit?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
dit losses, the recording of ROU assets and liabilities and contingencies. Actual results 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, Hydrodog maintains cash balances at one commercial bank, and its bank balance can at times exceed the FDIC insured deposit limit of $250,000. 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.
This statement indicates that while Hydrodog's cash holdings may surpass the standard FDIC insurance coverage, the company has not suffered any financial losses as a result of this practice. This could be reassuring to potential franchisees, as it suggests that Hydrodog is managing its finances responsibly and has not encountered issues related to uninsured deposits.
It is important for a prospective Hydrodog franchisee to understand the implications of Hydrodog's cash management practices. While the company reports no losses to date, exceeding FDIC limits always carries some level of risk. A franchisee may want to inquire about Hydrodog's specific strategies for mitigating this risk, such as diversifying its banking relationships or utilizing other risk management tools.