Within what timeframe after the consolidated financial statements are available must Carbones Pizzeria's management evaluate the company's ability to continue as a going concern?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, management is required to evaluate the company's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued. This evaluation involves assessing whether there are any conditions or events that, when considered together, raise substantial doubt about the company's ability to continue operating for the next 12 months.

This assessment is a standard accounting practice, ensuring that the financial statements provide a realistic view of the company's financial health. It requires Carbones Pizzeria's management to consider all available information and make informed judgments about the company's future prospects. The evaluation is crucial for stakeholders, including potential franchisees, as it provides insights into the stability and long-term viability of the franchise system.

For a prospective Carbones Pizzeria franchisee, this means that the franchisor is actively monitoring its financial condition and assessing its ability to remain in business. While the FDD does not specify the exact procedures or metrics used in this evaluation, it confirms that management is aware of its responsibility to disclose any significant risks to the company's continued operation. This transparency can help franchisees make informed decisions about investing in the franchise.