What entities are included in the consolidated financial statements for Carbones Pizzeria?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, 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. The purpose of consolidated financial statements is to provide a comprehensive view of the financial position and activities of a parent company (M&T Pizza Incorporated) and its subsidiaries as a single economic entity. This approach eliminates any material intercompany accounts and transactions during the consolidation process.

For a prospective Carbones Pizzeria franchisee, understanding the entities included in the consolidated financial statements provides insight into the overall structure and financial health of the Carbones Pizzeria organization. It shows the different layers of the company and how they are connected financially. This can be useful in assessing the stability and resources of the franchisor.

The fact that all material intercompany accounts and transactions are eliminated in consolidation means that the financial statements provide a clearer picture of the group's performance with external parties, without distortion from internal dealings. This is a standard accounting practice that ensures transparency and accuracy in financial reporting.