What internal controls are management responsible for designing, implementing, and maintaining at Beggars Pizza, according to the FDD?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Beggars Pizza Franchise, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, management holds specific responsibilities regarding the company's financial statements. It is their duty to ensure the statements are prepared and presented fairly, adhering to the accounting principles generally accepted in the United States of America.
Specifically, Beggars Pizza's management is tasked with the design, implementation, and continuous maintenance of internal controls. These controls are essential for ensuring that the financial statements remain free from material misstatements, whether those misstatements arise from fraud or error. This responsibility highlights the importance of a robust internal control system to safeguard the accuracy and reliability of financial reporting.
Furthermore, in preparing these financial statements, the management of Beggars Pizza must evaluate whether there are conditions or events that, when considered together, might raise significant doubts about the company's ability to continue operating as a going concern within one year after the financial statements are issued. This forward-looking assessment is a critical component of their financial oversight duties.