According to the 2024 FDD, All States M.E.D. uses the accrual basis of accounting. This accounting method recognizes revenues when earned and expenses when incurred, regardless of when cash changes hands. This provides a more accurate picture of the company's financial performance over a period of time compared to cash basis accounting.

For a prospective All States M.E.D. franchisee, this means that the financial statements included in the FDD, and any financial reporting they will be required to provide to All States M.E.D., are prepared using the accrual method. Understanding this is crucial for interpreting the financial data presented and for managing their own franchise's finances.

The FDD also specifies that All States M.E.D. depreciates its property and equipment using the straight-line method for financial reporting purposes, spreading the cost evenly over the asset's useful life (5 years). However, for federal income tax purposes, the company uses accelerated depreciation methods. This difference highlights that franchisees may need to consult with a financial professional to understand the tax implications of their All States M.E.D. franchise and ensure compliance with all applicable regulations.