Why were the 2021 financial statements for Beggars Pizza restated?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Restatement to Prior Period Financial Statements
As disclosed in Note 5, the Company elected to pay the Illinois Pass-Through Entity Tax ("PTE Tax") on behalf of
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the 2021 financial statements were restated due to the company's election to pay the Illinois Pass-Through Entity Tax (PTE Tax) on behalf of its members. This change in accounting treatment required an adjustment to how the PTE Tax payment was recorded.
Specifically, the restatement involved reclassifying the $35,586 PTE Tax payment from a miscellaneous expense to a distribution to members. This means that instead of being treated as a general operating expense, the payment was recognized as a direct allocation of funds to the members of Beggars Pizza Franchise, LLC.
This restatement affected specific line items within Beggars Pizza's 2021 financial statements. While the exact line items are not detailed in this excerpt, the change ensures that the financial statements accurately reflect the nature of the PTE Tax payment as a distribution to members, aligning with accounting principles. This adjustment provides a more transparent view of how the company's earnings are allocated.
For a prospective franchisee, this restatement highlights the importance of understanding how tax payments and member distributions are accounted for, as it can impact the reported profitability and financial health of Beggars Pizza. It also demonstrates the company's adherence to proper accounting practices and transparency in its financial reporting.