What accounting principles must Beard Papas' financial statements adhere to?

According to the 2025 Beard Papas FDD, the company's accounting and reporting policies conform to accounting principles generally accepted in the United States of America, which is also known as U.S. GAAP. This means that Beard Papas adheres to a standardized set of rules and guidelines when preparing its financial statements.

Furthermore, the FDD notes that the preparation of financial statements in conformity with U.S. GAAP requires the management of Beard Papas to make estimates and assumptions. These estimates relate to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the period. Because these are estimates, the actual results could differ.

For a prospective franchisee, this indicates that Beard Papas aims to provide financial information that is transparent and consistent with standard accounting practices. However, it is important to recognize that the financial statements involve management's judgment and estimates, which may impact the reported financial position and results of operations. Franchisees should consider this when reviewing and interpreting the financial information provided in the FDD.