What was the total cash amount for Mr. Sandless as of December 31, 2022?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
chise arrangements generally include a license which provides for payments of initial fees as well as continuing royalties to the Company based upon a percentage of sales. Under this arrangement, franchisees are granted the right to operate a Mr. Sandless franchise business for a specified number of years.
Concentration of Credit Risk-Financial instruments that potentially expose the Company to concentration of credit risk pr
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the balances in the company's cash accounts do not exceed the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 as of December 31, 2022. This indicates that Mr. Sandless maintains its cash and cash equivalents with accredited financial institutions and that the cash balances were below the FDIC insurance limit.
For a prospective franchisee, this information provides insight into how Mr. Sandless manages its cash and credit risk. Knowing that the company's cash accounts are maintained within FDIC limits can be reassuring, as it suggests a conservative approach to financial management and reduces the risk of loss due to bank failure.
However, the document does not specify the exact total cash amount held by Mr. Sandless as of December 31, 2022. A potential franchisee may want to ask Mr. Sandless for the specific cash balance to gain a clearer picture of the company's financial health and liquidity.