Where does Ledgers maintain its cash?

According to Ledgers' 2025 Franchise Disclosure Document, the company maintains its cash in financial institutions insured by the Federal Deposit Insurance Corporation (FDIC). This is a common practice for businesses to safeguard their cash assets. However, the disclosure also notes that the deposit accounts may, at times, exceed federally insured limits.

For a prospective Ledgers franchisee, this means that while the company's cash is generally protected, there could be instances where amounts above the FDIC insurance limit are held in these accounts. The FDIC insures deposits up to $250,000 per depositor, per insured bank. If Ledgers holds amounts exceeding this limit in a single institution, the excess could be at risk in the event of a bank failure.

This disclosure is important for potential franchisees to consider, as it provides insight into Ledgers' financial management practices and risk exposure. While the company believes any claims or legal proceedings will not have a material adverse effect, understanding how cash is managed and protected is a key part of assessing the overall financial health and stability of the franchise system. It would be prudent for a prospective franchisee to inquire about the company's specific policies for managing cash balances and mitigating risks associated with exceeding FDIC insurance limits.