Does Carbones Pizzeria believe its current legal actions will materially affect its financial position?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company addresses its stance on legal actions in the notes to its consolidated financial statements. Specifically, as of October 31, 2023, Carbones Pizzeria acknowledges that it is involved in legal actions that arise in the ordinary course of its business operations.

However, Carbones Pizzeria states that it does not anticipate these legal actions will have a material adverse effect on its financial position. This assessment extends to the company's results of operations or cash flows.

For a prospective franchisee, this statement suggests that while Carbones Pizzeria is subject to legal challenges, the company believes these challenges are manageable and will not significantly harm the financial health of the franchise system. It is important to note that this is the company's opinion and that a franchisee should conduct their own due diligence, including consulting with a financial advisor, to assess the potential risks associated with any ongoing or future legal actions.