What was the total cash amount for Mr. Sandless as of December 31, 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
es 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 primarily consist of cash and cash equivalents and franchisee accounts receivable. The bal
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 did not exceed the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 as of December 31, 2023. This indicates that Mr. Sandless maintained cash balances within the FDIC-insured limit at that time.
For a prospective franchisee, this information provides insight into Mr. Sandless's cash management practices. It suggests that the company is aware of and adheres to FDIC insurance limits, which is a common practice to protect its cash holdings. However, the document does not specify the exact cash balance, only that it was below $250,000.
While the FDD provides assurance that cash holdings are within insured limits, a potential franchisee might want to inquire further about the company's specific cash management strategies, including the number and types of accounts used, and the overall liquidity position of Mr. Sandless. Understanding these details can help a franchisee assess the financial stability and operational efficiency of the franchisor.