Where does Itan hold its cash deposits?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ies - 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 company holds its cash deposits at a regional bank. As of December 31, 2024 and 2023, the balance in the account is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per bank.
As of December 31, 2024, Itan had $0 in excess of the FDIC limit, and as of December 31, 2023, the company had $104,387 in excess of the FDIC limit. Itan's management believes that the company is not exposed to any significant credit risk with respect to its cash.
For a prospective franchisee, this indicates that Itan uses a regional bank for its cash deposits, which are insured up to $250,000 by the FDIC. The fact that Itan's cash deposits sometimes exceed the FDIC insurance limit could be a point of interest for potential franchisees, though management does not believe this exposes the company to significant credit risk.