What was the total value of Mr. Sandless's cash assets at the end of 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)
Based on the 2025 Mr. Sandless Franchise Disclosure Document, the company's financial statements include notes regarding concentration of credit risk. These notes state that Mr. Sandless's financial instruments that potentially expose the company to credit risk primarily consist of cash and cash equivalents, as well as franchisee accounts receivable.
Specifically, the FDD indicates that the balances in Mr. Sandless's cash accounts did not exceed the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 as of December 31, 2023. This means that the company maintained its cash and cash equivalents with accredited financial institutions, and the total amount was within the FDIC's insured limit for that year.
While the FDD confirms that the cash balances were below the $250,000 FDIC limit, it does not provide the exact total value of Mr. Sandless's cash assets at the end of 2023. A prospective franchisee should request this specific figure from Mr. Sandless to gain a clearer understanding of the company's financial health and liquidity.