What does Best Brains Inc. use to evaluate its estimates and assumptions?

According to Best Brains' 2025 Franchise Disclosure Document, Best Brains Inc. regularly evaluates its estimates and assumptions by using historical experience and expectations about the future. They adjust these estimates and assumptions when facts and circumstances indicate a need for change.

This practice is important for franchisees because the financial statements rely on these estimates and assumptions. If the estimates are not accurate, the financial statements may not accurately reflect the financial condition of Best Brains. This could impact a franchisee's understanding of the franchisor's financial stability and ability to support the franchise system.

Prospective franchisees should consider the risks and uncertainties that Best Brains Inc. identifies as potentially causing actual results to differ from estimated amounts. These include changes in the beverage industry, competition, litigation, legislation, and regulations. Understanding how Best Brains manages these risks can help a franchisee assess the potential impact on their investment.