How often does Carbones Pizzeria evaluate the net realizable value of its long-lived assets?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company periodically evaluates the net realizable value of its long-lived assets. These assets include property, equipment, and intangible assets. This evaluation relies on several factors, such as operating results, business plans, economic projections, and anticipated future cash flows.

For a potential Carbones Pizzeria franchisee, this means that the franchisor reviews the value of its assets on a regular basis to ensure they are accurately reflected on the company's financial statements. This process helps in determining if there has been any impairment in the value of these assets. Impairment is recognized when the fair value of an asset falls below its carrying value.

The evaluation process is important for franchisees because it can affect the overall financial health and stability of Carbones Pizzeria. If the company identifies significant asset impairments, it could impact future investment decisions, operational strategies, and the resources available to support franchisees. Franchisees should be aware of these evaluations as they provide insights into the franchisor's financial management practices and the potential risks associated with long-lived assets.

While the FDD states that Carbones Pizzeria periodically evaluates these assets, it does not specify the exact frequency (e.g., annually, quarterly). A prospective franchisee may want to ask the franchisor for more specific information about how often these evaluations are conducted and what criteria are used to determine if an asset is impaired. Understanding the timing and methodology of these evaluations can help a franchisee better assess the financial risks and opportunities associated with investing in a Carbones Pizzeria franchise.