For Beggars Pizza, what specific sections of the financial statements were affected by the restatement?

According to the 2025 FDD, the 2021 financial statements for Beggars Pizza 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 involved reclassifying the PTE Tax payment, which totaled $35,586, as a distribution to members instead of a miscellaneous expense.

The specific financial statement line items affected by this restatement for Beggars Pizza in 2021 are not explicitly listed in the provided documentation. However, the auditor's report and Note 5 indicate that the restatement was made to correct the classification of the PTE Tax payment. This implies that the restatement would have impacted the 'miscellaneous expense' line item on the income statement, reducing the expenses reported for that year. Additionally, it would have increased the 'distribution to members' line item within the members' equity section of the balance sheet, reflecting the payment as a return of capital to the members.

For a prospective franchisee, this restatement highlights the importance of understanding how tax payments are classified and reported in the financial statements. It also demonstrates that Beggars Pizza's financial statements are subject to adjustments and corrections, even after being audited. While the restatement itself may not have a significant impact on the overall financial health of the company, it is essential to review the restated financial statements carefully and understand the reasons behind the restatement to make informed decisions about investing in a Beggars Pizza franchise.