In Bb.Q Chicken's consolidated financial statements, what happens to inter-company items and transactions between companies included in the consolidation?

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the consolidated financial statements include the accounts of the company and all subsidiaries that are more than 50 percent owned or certain "variable interest entities" under accounting principles generally accepted in the United States of America. When Bb.Q Chicken prepares its consolidated financial statements, any inter-company items and transactions between companies included within the consolidation are eliminated. Additionally, any unrealized inter-company profits in inventory and other assets are also eliminated during the consolidation process.

This accounting practice ensures that the financial statements provide a clear and accurate picture of the Bb.Q Chicken's overall financial position and performance, without distortion from transactions occurring within the company structure. By eliminating these internal transactions, the consolidated statements reflect only the Bb.Q Chicken's dealings with outside entities.

For a prospective Bb.Q Chicken franchisee, this means that the financial data presented in the consolidated statements accurately represents the financial health of the overall Bb.Q Chicken organization. This is a standard accounting procedure, promoting transparency and preventing inflated financials that could mislead investors or franchisees.