Does Ledgers' cash on deposit ever exceed the federally insured limits?

According to Ledgers' 2025 Franchise Disclosure Document, the company acknowledges that its deposit accounts may, at times, exceed the limits insured by the Federal Deposit Insurance Corporation (FDIC). This means that Ledgers may hold cash balances in financial institutions that are greater than the amount the FDIC insures.

For a prospective franchisee, this information is relevant because it provides insight into Ledgers' financial management practices. While the statement itself doesn't directly impact the franchisee's operations, it's part of understanding the overall financial health and risk profile of the franchisor. Franchisees may want to inquire about the company's strategy for managing cash balances that exceed FDIC insurance limits to ensure the funds are secure.

It is common for businesses, including franchisors, to have cash deposits that exceed FDIC limits, especially if they have significant cash flow. However, prudent financial management would dictate that the company has strategies in place to mitigate the risk associated with uninsured deposits, such as diversifying deposits across multiple institutions or utilizing other forms of insurance or collateralization.