What years are covered by the audited financial statements for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
October 31, 2024:
| Beginning of the period | 36 |
|---|---|
| Change during the period | (2) |
| End of the period | 34 |
Additionally, the Company owned and operated one corporate location, Carbone's Pizzeria, during the year ended October 31, 2024.
2. Summary of Significant Accounting Policies
Fiscal Year
The Company's fiscal year is October 31.
Basis of Accounting and Consolidated Financial Statement Presentation
The Consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, the provided excerpts from Item 22 include financial statements for Carbones Pizzeria for the years ended October 31, 2022, October 31, 2023, and October 31, 2024. These statements offer a prospective franchisee insight into the financial performance of the company over the three-year period.
The financial statements include notes on significant accounting policies, such as the fiscal year, which ends on October 31, the basis of accounting, and principles of consolidation. These notes also cover how Carbones Pizzeria handles cash and cash equivalents, accounts receivable, advertising expenses, and income taxes. Understanding these policies is crucial for a franchisee to assess the financial health and stability of the company.
Specifically, the notes detail how revenue is recognized, including royalties and franchise fees, and how advertising expenses are managed. For instance, advertising expenses for the years ended October 31, 2023, and October 31, 2024, amounted to $278,545 and $237,855, respectively, while advertising and promotion expenses for the year ended October 31, 2022, were approximately $506,000. These figures can help a franchisee understand the company's investment in marketing and advertising, which is essential for brand recognition and customer acquisition.