For what year are the consolidated financial statements presented in the notes for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes to Consolidated Financial Statements As of and For the Year ended October 31, 2022
A. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Revenue recognition (Continued)
Company Restaurant Sales
The Company earns revenue from sales at the Company owned restaurant and is recognized at the time of sale.
Advertising
In accordance with signed franchise agreements, franchisees contribute royalties to an advertising fund. The fund is to be used to maximize public recognition of Carbone's Pizzeria.
Advertising costs are expensed as incurred. Advertising and promotion expense is approximately $506,000 for the year ended October 31, 2022.
Notes to Consolidated Financial Statements For the Year Ended October 31, 2023
2. Summary of Significant Accounting Policies (Continued)
Initial and Renewal Franchise Fees (Continued)
During that time, the franchisee is allowed to use the Carbone's Pizzeria name and menu. When the franchise agreement expires, the franchise may pay an additional franchise fee to renew the agreement. The contract term for franchise renewal agreements is 10 years. There were no initial and renewal franchise fees in the year ended October 31, 2023.
Company Restaurant Sales
The Company earns revenue from sales at the Company owned restaurant and is recognized at the time of sale.
Advertising
In accordance with signed franchise agreements, franchisees contribute royalties to an advertising fund. The fund is to be used to maximize public recognition of Carbone's Pizzeria. The Company expenses advertising costs as incurred. Advertising expenses are included in sales and marketing expenses for the years ended October 31, 2023 amounted to $278,545.
Notes to Consolidated Financial Statements For the Year Ended October 31, 2024
2. Summary of Significant Accounting Policies (Continued)
Initial and Renewal Franchise Fees (Continued)
The contract term for the initial franchise agreements is 10 years commencing on the earlier of the date when the restaurant opens or twelve months following the date the franchise agreement was signed. During that time, the franchisee is allowed to use the Carbone's Pizzeria name and menu. When the franchise agreement expires, the franchise may pay an additional franchise fee to renew the agreement. The contract term for franchise renewal agreements is 10 years. There were no initial and renewal franchise fees in the year ended October 31, 2024.
Company Restaurant Sales
The Company earns revenue from sales at the Company owned restaurant and is recognized at the time of sale.
Advertising
In accordance with signed franchise agreements, franchisees contribute royalties to an advertising fund. The fund is to be used to maximize public recognition of Carbone's Pizzeria. The Company expenses advertising costs as incurred. Advertising expenses are included in sales and marketing expenses for the years ended October 31, 2024 amounted to $237,855.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the notes to consolidated financial statements are presented for the years ended October 31, 2022, October 31, 2023, and October 31, 2024. These statements offer a comprehensive view of the company's financial performance and position over the three-year period.
Specifically, the notes provide details on various aspects of Carbones Pizzeria's accounting policies and financial activities. This includes revenue recognition methods, advertising expenses, and income tax considerations. For instance, advertising expenses were approximately $506,000 for the year ended October 31, 2022, $278,545 for the year ended October 31, 2023 and $237,855 for the year ended October 31, 2024. These figures can help prospective franchisees understand the scale of advertising investments made by the company.
The notes also cover initial and renewal franchise fees, noting that there were no such fees in the years ended October 31, 2022, October 31, 2023 and October 31, 2024. Additionally, the notes address the company's policy on uncertain tax positions and the potential impact of examinations by tax authorities. This information is crucial for franchisees to assess the financial stability and compliance practices of Carbones Pizzeria.
Overall, the consolidated financial statements and accompanying notes offer valuable insights into Carbones Pizzeria's financial health and operational strategies. Reviewing these documents can help potential franchisees make informed decisions about investing in the franchise.