Within what timeframe after the financial statements are available to be issued must Beggars Pizza's management evaluate the company's ability to continue as a going concern?

According to Beggars Pizza's 2025 Franchise Disclosure Document, management is required to evaluate the company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. This evaluation is part of the management's responsibility for preparing and fairly presenting the financial statements. This assessment considers conditions or events that, in the aggregate, could raise substantial doubt about Beggars Pizza's ability to continue operating.

This requirement ensures that Beggars Pizza's management proactively assesses the company's financial health and its capacity to sustain operations. The evaluation must occur within a year of the financial statements being available, providing a relatively short-term outlook on the company's viability. This forward-looking assessment is crucial for identifying potential risks and challenges that could impact the franchise system.

For a prospective franchisee, this indicates that Beggars Pizza's financial statements include a review of the company's ability to remain a viable business. This review offers some level of assurance that the franchisor is actively monitoring its financial stability. However, franchisees should still conduct their own due diligence and seek professional advice to fully understand the franchisor's financial condition and future prospects. Understanding the franchisor's financial stability is crucial for making an informed investment decision.

It is important to note that while management is responsible for this evaluation, the independent auditor also plays a role in assessing Beggars Pizza's ability to continue as a going concern. The auditor's responsibilities include concluding whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for a reasonable period of time. This dual assessment provides additional oversight and helps ensure the reliability of the financial statements.