Are prospective franchisees of Carbones Pizzeria advised to be aware that the financial statements as of and for the 4-month period February 28, 2025 are unaudited?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, prospective franchisees are advised that the financial statements as of and for the 4-month period ended February 28, 2025, were prepared without an audit. The FDD explicitly states that no Certified Public Accountant has audited these figures or expressed an opinion regarding their contents and form. This disclaimer is a standard practice to inform potential franchisees that the interim financial data has not undergone the rigorous scrutiny of an audit.

For a prospective franchisee, this means the financial statements for this period should be viewed with caution. While the information can still be useful, it has not been independently verified, and there could be inaccuracies or omissions. It is crucial to understand that unaudited statements carry a higher risk of containing errors compared to audited statements, which have been examined by an independent accountant.

Given this, a potential Carbones Pizzeria franchisee should consider this when evaluating the financial health of the company. It would be prudent to carefully review the audited financial statements for the years ended October 31, 2024, October 31, 2023, and October 31, 2022, which are also included in the FDD as Exhibit D. Additionally, it is advisable to seek professional financial advice to help interpret these statements and understand the overall financial condition of Carbones Pizzeria. Asking the franchisor for clarification or additional supporting documentation for the unaudited statements would also be a reasonable step in the due diligence process.