What calendar year basis of reporting has Chocolate Bash adopted for its financial statements?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). As a result, the Company records revenue when earned and expenses when incurred. The Company has adopted the calendar year as its basis of reporting.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the company has adopted the calendar year as its basis of reporting. This means that Chocolate Bash's financial year aligns with the standard calendar year, beginning on January 1 and ending on December 31.
For a prospective franchisee, this is a fairly standard and straightforward approach to financial reporting. It simplifies comparisons with other businesses and provides a clear annual cycle for assessing performance. The FDD includes audited financial statements from December 31, 2021, December 31, 2022, and December 31, 2023, reflecting this calendar year-end.
This standardized reporting period allows franchisees to easily track their own financial performance against Chocolate Bash's reported figures and industry benchmarks. It also ensures consistency in financial reporting, making it easier for franchisees to manage their business and plan for the future.