On what basis of accounting does All County prepare its financial statements?

According to All County's 2025 Franchise Disclosure Document, the company prepares its financial statements using the accrual basis of accounting. This means that revenues are recognized when earned, and expenses are recognized when they are incurred, adhering to accounting principles generally accepted in the United States of America.

The accrual method provides a more accurate picture of All County's financial performance over a period of time compared to the cash basis method, which recognizes revenue and expenses only when cash changes hands. This is because the accrual method matches revenues with the expenses incurred to generate those revenues, regardless of when the cash transaction occurs.

For a prospective All County franchisee, understanding the franchisor's accounting methods is important for evaluating the financial statements provided in the FDD. The accrual method offers a more comprehensive view of the company's financial health, which can aid in making informed decisions about investing in an All County franchise. Additionally, the financial statements are prepared under Generally Accepted Accounting Principles.