What is the timeframe considered when evaluating Carbones Pizzeria's ability to continue as a going concern?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the auditor must conclude whether there are conditions or events that raise substantial doubt about M&T Pizza Incorporated and Subsidiaries' ability to continue as a going concern for a reasonable period of time. The FDD does not specify a defined length for what constitutes a "reasonable period of time."

This assessment is crucial for prospective franchisees because it speaks to the financial stability of the parent company, M&T Pizza Incorporated, which owns Carbones Pizzeria. If there are doubts about the company's ability to continue as a going concern, it suggests potential financial risks that could impact the support and services provided to franchisees.

Because the FDD does not specify what timeframe is considered a "reasonable period of time" for Carbones Pizzeria to remain a going concern, it is important for a prospective franchisee to perform their own due diligence. They should inquire directly with the franchisor about the specific timeframe used in their going concern assessments and the factors considered in making that determination. Understanding this timeframe can provide a clearer picture of the company's financial outlook and potential risks.