What accounting principles does Carbones Pizzeria conform to when preparing consolidated financial statements?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, also known as "US GAAP". This indicates that Carbones Pizzeria adheres to a standardized set of accounting rules and guidelines when presenting its financial information. These principles ensure transparency and comparability in financial reporting.

For a prospective franchisee, this means that Carbones Pizzeria's financial statements are prepared using a consistent and recognized framework. This allows for easier analysis and comparison of the company's financial performance over different periods and against other companies in the industry. Understanding that the financial statements conform to US GAAP provides a level of assurance regarding the reliability and credibility of the reported financial data.

Furthermore, the consolidated financial statements include M & T Pizza Incorporated (M&T), a Minnesota corporation, and its wholly-owned subsidiaries, Carbone & Sons, Inc. (C&S), a Minnesota corporation, and Carbone Pizza, Inc. (CPI), a Minnesota corporation. All material intercompany accounts and transactions have been eliminated in consolidation. This means that the financial performance of these entities are combined for reporting purposes, providing a comprehensive view of the overall financial health of Carbones Pizzeria and its related entities.