What accounting standards are used to prepare the Beard Papas financial statements?

According to the 2025 Beard Papas Franchise Disclosure Document, 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 accounting rules and guidelines when preparing its financial statements. This is important for franchisees because it ensures a level of consistency and comparability in the financial information provided by the company. U.S. GAAP is the standard framework for financial reporting in the United States, ensuring that financial statements are presented fairly and transparently.

However, the FDD also notes that the preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results may differ from these estimates. This is a standard disclaimer, but it highlights the inherent uncertainty involved in financial reporting, even when using a well-defined framework like U.S. GAAP.