For Beggars Pizza, what was the effect of the restatement on the members' equity as of January 1, 2021?

According to Beggars Pizza's 2025 Franchise Disclosure Document, a restatement of the company's 2021 financial statements occurred. This restatement was due to the company's election to pay the Illinois Pass-Through Entity tax (PTE Tax) on behalf of its members. The correction involved reclassifying the PTE Tax payment as a distribution to members instead of a miscellaneous expense, which was the original classification.

However, the 2025 FDD explicitly states that this restatement had no effect on the members' equity as of January 1, 2021. This means that while certain line items in the 2021 financial statements were adjusted, the overall value of the members' equity remained unchanged at the beginning of that year.

For a prospective Beggars Pizza franchisee, this information indicates that while the company made a correction to its financial reporting for 2021, the correction did not impact the fundamental equity position of its members at the start of that year. This suggests that the restatement was more of a reclassification of expenses rather than a correction of a material error that would have affected the overall financial health of the company.