For Beggars Pizza, by how much did the restatement affect the 2021 miscellaneous expense?
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 restatement reclassified a payment of $35,586 from a miscellaneous expense to a distribution to members.
For a prospective Beggars Pizza franchisee, this restatement indicates a change in how the company accounted for the PTE Tax. Initially, it was recorded as a miscellaneous expense, but after the restatement, it was classified as a distribution to members. This change does not directly impact the franchisee's operations or financial obligations.
The restatement reflects a correction in the financial reporting rather than a change in the actual cash flow or operational practices of Beggars Pizza. Franchisees should be aware of these types of adjustments when reviewing the financial statements, as they provide insight into the company's accounting practices and compliance with tax regulations.