Does Carbones Pizzeria use money market funds as cash equivalents?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company does consider money market funds as cash equivalents under specific conditions. For the year ending October 31, 2022, Carbones Pizzeria considered money market funds and other highly liquid investments with original maturities of three months or less to be cash equivalents.

For the years ending October 31, 2023, and October 31, 2024, Carbones Pizzeria changed its policy and considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents reported as of October 31, 2024.

This accounting practice is important for prospective franchisees to understand because it affects how Carbones Pizzeria reports its financial health. Cash equivalents are easily convertible to cash and are a sign of liquidity. The change in policy and the absence of cash equivalents in 2024 could signal changes in the company's investment strategy or cash management. A potential franchisee should inquire about the reasons for these changes to better assess the financial stability and practices of Carbones Pizzeria.