What is the FDIC insurance coverage limit for Learningrx's deposits per financial institution?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
---------|--------------|--------------| | Current income taxes | | | | Federal | $ 42,057 | $ 3,961 | | State | 9,269 | 820 | | Deferred taxes | | | | Federal | (42,057) | 5,206 | | State | (9,029) | 1,494 | | Total | $ 240 | $ 11,481 |
4. Financial Instruments with Risk of Accounting Loss
The Corporation's cash and
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the FDIC insurance covers the first $250,000 of deposits per financial institution. This means that Learningrx's cash deposits, including checking and money market accounts, are insured up to this amount per bank. The deposits are carried at cost, and the carrying amount is displayed on the balance sheet as Cash and Cash Equivalents.
For a prospective Learningrx franchisee, this information is relevant when managing the finances of their franchise. It is important to ensure that cash deposits are held in a manner that maximizes FDIC insurance coverage. For example, if a franchisee has more than $250,000 in cash, it may be prudent to distribute the funds across multiple financial institutions to ensure full coverage. This reduces the risk of loss in the event of a bank failure.
This type of FDIC coverage is standard practice in the franchise industry. Franchisees should always be aware of the insurance limits and manage their cash accordingly to protect their assets. It is also important to note that the FDIC coverage limit is subject to change, so franchisees should stay informed of any updates to the regulations.