What is Carbones Pizzeria's responsibility regarding estimates and assumptions used in financial statements?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company's management is required to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. These estimates also impact related disclosures. This is a standard accounting practice under US GAAP (Generally Accepted Accounting Principles).

Carbones Pizzeria evaluates these estimates and assumptions on an ongoing basis, considering historical experience and other factors deemed reasonable. This evaluation process suggests that the company actively monitors and adjusts its financial reporting based on the best available information at the time. However, the document also acknowledges that actual results could differ from these estimates, indicating an inherent uncertainty in financial forecasting.

For a prospective franchisee, this means that the financial statements provided by Carbones Pizzeria are based on management's best judgment but are not guarantees of future performance. It is important to understand that these figures are subject to change and that actual financial outcomes may vary. Therefore, a franchisee should consider these estimates as a starting point for their own financial planning and conduct thorough due diligence, including seeking professional financial advice, to assess the potential risks and rewards of investing in a Carbones Pizzeria franchise.