What amount of Itan's cash was in excess of the FDIC limit as of December 31, 2022?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ties - The Company follows the alternative accounting standard for private companies with respect to entities under common control. As such, entities under common control have not been evaluated under the guidance in the variable interest subsections of the Financial Accounting Standards Board ("FASB") ASC 810.
Fair value measurements - The Company follows accounting standards consistent with the FASB codification which defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements for all fi
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the amount of Itan's cash that was in excess of the FDIC limit as of December 31, 2022, was $0. The FDIC insures deposits up to $250,000 per bank. This means that Itan had no cash holdings exceeding this insured limit at that time.
For a prospective franchisee, this information provides insight into Itan's cash management practices. The fact that Itan had no cash exceeding the FDIC limit suggests that the company maintained its cash deposits within the insured limits, thereby minimizing risk.
It is important to note that while the company was fully insured in 2022, the amount exceeding the FDIC limit was $104,387 as of December 31, 2023. This may indicate a change in cash management strategy or an increase in cash holdings during 2023.