What does Potbelly Sandwich Works consider to be cash equivalents?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
sh and Cash Equivalents*
We consider all highly liquid investment instruments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash in bank deposit accounts that, at times, may exceed federally insured limits; however, we have not experienced any losses in these accounts. We believe this cash is not exposed to any significant credit risk. These are valued within the fair value hierarchy as Level 1 measurements.
(h) Restricted Cash
As of December 29, 2024, we had restricted cash related to funds held in a money market account as collateral for letters of credit to certain lease agreements.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the company considers highly liquid investment instruments with an original maturity of three months or less to be cash equivalents. These instruments are valued within the fair value hierarchy as Level 1 measurements.
Potbelly Sandwich Works maintains cash in bank deposit accounts, which at times, may exceed federally insured limits. However, the company states that it has not experienced any losses in these accounts and believes this cash is not exposed to any significant credit risk.
As of December 29, 2024, Potbelly Sandwich Works had restricted cash related to funds held in a money market account as collateral for letters of credit to certain lease agreements. This restricted cash is reconciled with the cash and cash equivalents presented in the consolidated balance sheets to the total amount shown in the consolidated statements of cash flows.