Are there any disclaimers related to the Big Apple Bagels financial statements?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, there is a disclaimer regarding the use of estimates in the preparation of their financial statements. Specifically, the FDD states that the preparation of financial statements requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, contingent items, revenues, and expenses. This is a standard accounting practice, but it means that the actual financial results could differ from the reported estimates.

This disclaimer is important for prospective Big Apple Bagels franchisees because it highlights the inherent uncertainty in financial reporting. While the financial statements provide a picture of the company's financial performance, they are based on estimates and assumptions that may not materialize. This means that the actual financial condition of Big Apple Bagels could be different from what is presented in the financial statements.

It is common for franchisors to include such disclaimers in their FDDs, as it is a standard accounting practice to rely on estimates. Franchisees should carefully review the financial statements and consider the potential impact of these estimates when making their investment decision. It would be prudent for a potential franchisee to discuss these estimates with a financial advisor to fully understand their implications.

Prospective franchisees should also consider this disclaimer in conjunction with other information in the FDD, such as the franchisor's history, experience, and financial performance. By carefully evaluating all available information, franchisees can make a more informed decision about whether to invest in a Big Apple Bagels franchise.