Up to what amount does the FDIC insure Monicals Pizza's cash balances per bank?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the Federal Deposit Insurance Corporation (FDIC) insures the company's cash balances up to $250,000 per bank. This means that if Monicals Pizza has cash deposits in multiple banks, each account is insured up to $250,000.

However, the FDD also notes that Monicals Pizza's cash balances may, at times, exceed these federally insured limits. While the company states they do not anticipate any losses on these deposits, it's important for prospective franchisees to understand this potential risk. If a bank were to fail and Monicals Pizza had more than $250,000 in that bank, the excess amount might not be fully recoverable.

This is a fairly standard practice for businesses, as it's common to maintain cash balances for operational needs. However, franchisees should be aware of Monicals Pizza's cash management practices and consider the implications of exceeding FDIC insurance limits. It would be prudent for a potential franchisee to discuss cash management strategies with Monicals Pizza to understand how they mitigate this risk, such as diversifying deposits across multiple banks or utilizing other financial instruments.