Up to what amount are Itan's cash deposits insured by the FDIC per bank?
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.
For a prospective Itan franchisee, this means that the cash held in the company's bank accounts is protected up to $250,000 by the FDIC. This insurance covers the company's deposits in the event of a bank failure, providing a level of financial security. It is important to note that the FDIC insurance limit applies per bank, so if Itan uses multiple banks, the $250,000 limit applies separately to each bank.
The document also indicates that as of December 31, 2024, Itan had $0 in excess of the FDIC limit, while it had $104,387 in excess of the limit as of December 31, 2023. This suggests that Itan's cash management practices may vary from year to year, and it is important for prospective franchisees to understand how Itan manages its cash and ensures that deposits are adequately insured.