Up to what amount is Pearce Bespoke's cash at the bank insured by the FDIC?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
counting – The Company uses the accrual basis of accounting in accordance with U.S. GAAP, whereby revenue is recognized when earned and expenses are recorded as incurred.
Cash
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company maintains its cash at a bank insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. However, the FDD also notes that, from time to time, Pearce Bespoke's cash holdings may exceed these FDIC limits.
For a prospective franchisee, this means that Pearce Bespoke's cash deposits are protected up to the standard FDIC insurance limit of $250,000. This is a common practice, as the FDIC is a standard protection for funds held in banks.
However, franchisees should be aware that any amounts exceeding this limit would not be insured. It would be prudent for a potential franchisee to inquire about Pearce Bespoke's typical cash management practices and whether measures are in place to mitigate risks associated with uninsured cash balances, especially if those balances routinely exceed the $250,000 FDIC insurance cap.