What is management's responsibility regarding the preparation of Chicago's Original Italian Beef Franchising LLC (Buona) financial statements?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, management is responsible for the preparation and fair presentation of the company's financial statements. This includes designing, implementing, and maintaining internal controls relevant to ensuring the financial statements are free from material misstatement, whether due to fraud or error.
Specifically, Buona's management must adhere to accounting principles generally accepted in the United States of America when preparing these financial statements. This ensures consistency and comparability across different companies and industries.
Furthermore, management is required to evaluate whether there are conditions or events that raise substantial doubt about Buona's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. This assessment is critical for providing transparency to potential investors and franchisees about the company's financial health and stability.