What were the total distributions reported for Beggars Pizza members in 2021 (as 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 to reflect the Illinois Pass-Through Entity Tax (PTE Tax) payment. This restatement reclassified $35,586 as a distribution to members, rather than as a miscellaneous expense as it was originally reported. This change was made because Beggars Pizza elected to pay the PTE Tax on behalf of its members.
For a prospective franchisee, this restatement indicates a change in how Beggars Pizza accounted for the PTE Tax. Instead of classifying it as a miscellaneous expense, it is now considered a distribution to members. This could have implications for how a franchisee's tax obligations are handled and reported.
It's important for potential franchisees to understand the nature of these distributions and how they might affect their individual tax liabilities. Consulting with a financial advisor or tax professional is recommended to fully grasp the implications of this accounting change and how it might impact their investment in a Beggars Pizza franchise.