What timeframe is used to evaluate Carbones Pizzeria's ability to continue as a going concern?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about M&T Pizza Incorporated and Subsidiaries ability to continue as a going concern for a reasonable period of time.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the auditor's responsibility includes concluding 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. This assessment is a standard part of the audit process for the company's consolidated financial statements.
The auditor's evaluation is based on conditions or events considered in the aggregate, meaning they look at the overall financial health and stability of Carbones Pizzeria. This involves analyzing various financial factors and potential risks that could impact the company's ability to sustain operations.
The FDD does not specify the exact length of what constitutes a "reasonable period of time." This is a subjective assessment made by the auditors based on their professional judgment and the specific circumstances of Carbones Pizzeria. A prospective franchisee should ask Carbones Pizzeria for more information about how "reasonable period of time" is defined and assessed in practice.