What accounting principles must Carbones Pizzeria's consolidated financial statements adhere to?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, also known as US GAAP. This means that Carbones Pizzeria follows a standardized set of rules and guidelines when reporting its financial performance and position. These principles ensure transparency and comparability in financial reporting, which is crucial for potential investors and franchisees.

For a prospective Carbones Pizzeria franchisee, this adherence to US GAAP provides a level of assurance that the financial information presented by the company is reliable and consistent. It allows franchisees to make informed decisions based on a clear understanding of the company's financial health. The FDD also states that the preparation of these statements requires management to make estimates and assumptions, which are then evaluated based on historical experience and other factors.

However, it's important to recognize that these estimates could differ from actual results. While US GAAP provides a framework, the use of estimates introduces a degree of subjectivity into the financial reporting process. Therefore, a prospective franchisee should consider the potential impact of these estimates when evaluating the financial statements. Additionally, the FDD notes that the company's fiscal year ends on October 31. This is relevant for understanding the time period covered by the financial statements presented in the FDD.