Are changes in member's equity included in Buona's financial statements?

According to Buona's 2025 Franchise Disclosure Document, changes in member's equity are addressed within the context of reclassifications made to prior year's financial statements. Specifically, Note 1, under Summary of Significant Accounting Policies, states that certain reclassifications may occur to conform to the current year's presentation. However, these reclassifications have no effect on previously reported results of operations or equity.

This indicates that while Buona may adjust the presentation of its financial statements, these adjustments do not retroactively alter the reported equity figures. For a prospective franchisee, this suggests that the historical financial data presented by Buona is consistently maintained, and any changes are purely presentational rather than substantive revisions of past performance. This consistency can be important for evaluating the financial health and stability of the company.

It is important to note that this statement refers to the company's financial statements and not necessarily the financial performance representations of affiliate-owned units presented in Item 19. Item 19 includes data from affiliate-owned restaurants, and the expenses listed do not include items such as depreciation, rent, interest, or income taxes. Therefore, while equity is maintained consistently in the company's financials, franchisees should carefully review all factors affecting net income when evaluating potential profitability.