For Brueggers Bagels, what is the timeframe after the consolidated financial statements are available to be issued that management must evaluate the company's ability to continue as a going concern?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
tenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, management is required to evaluate the company's ability to continue as a going concern for one year after the date the consolidated financial statements are available to be issued. This evaluation is part of preparing the consolidated financial statements.
This means that Brueggers Bagels's management must assess whether the company can remain in business for at least one year from the date their financial statements are ready. This assessment considers any conditions or events that, when taken together, could create significant doubt about the company's ability to continue operating.
For a prospective franchisee, this indicates that the franchisor is actively reviewing its financial stability and future viability. It is a standard accounting practice, but it's still important for franchisees to understand that the franchisor is aware of and addressing potential risks to its ongoing operations. Franchisees should review the financial statements and any related disclosures carefully to form their own opinion on the company's financial health.