What does Zoomin Groomin consider to be cash equivalents?

According to Zoomin Groomin's 2025 Franchise Disclosure Document, cash equivalents are defined within the context of the company's accounting policies. For financial reporting purposes, Zoomin Groomin considers "cash equivalents" to include highly liquid investments with maturities of three months or less from the date of purchase. This means that any investment the company can quickly convert to cash within a short timeframe is classified as a cash equivalent.

In addition to short-term investments, Zoomin Groomin also includes deposits in-transit from banks related to third-party credit card and debit card transactions as cash equivalents. This is because these deposits are considered readily available and will soon be converted to cash. This classification is important for accurately reflecting the company's immediate liquidity and financial position.

For a prospective Zoomin Groomin franchisee, understanding this definition is crucial because it impacts how the company's financial statements should be interpreted. Knowing what Zoomin Groomin considers to be cash equivalents helps in assessing the company's short-term financial health and stability, which is a key factor in evaluating the franchise opportunity. This definition ensures that the financial statements provide a clear picture of the company's liquid assets, which can be used to meet short-term obligations and fund ongoing operations.