When preparing Buona's financial statements, is management required to evaluate conditions that raise doubt about the company's ability to continue as a going concern, and within what timeframe?

According to Buona's 2025 Franchise Disclosure Document, management is required to evaluate conditions or events that could raise substantial doubt about the company's ability to continue as a going concern. This evaluation must consider these conditions in the aggregate. The period for this assessment is within one year after the date that the financial statements are available to be issued.

This requirement ensures that Buona's financial statements provide a realistic view of the company's financial health and sustainability. By evaluating potential risks to the company's ongoing operations, management provides transparency to potential franchisees and other stakeholders. This allows them to make informed decisions based on the company's ability to meet its financial obligations and continue supporting its franchisees.

For a prospective Buona franchisee, this means that the FDD includes an assessment of the company's financial stability and its ability to operate in the foreseeable future. This assessment is a standard part of financial reporting and is intended to provide assurance that the company is not facing any immediate threats to its survival. Franchisees can review the financial statements and related notes to understand management's evaluation and any potential risks identified.