In what currency does Coffee News perform its financial reporting?

According to Coffee News's 2025 Franchise Disclosure Document, the financial reporting currency depends on the specific entity. Coffee News USA, Inc., which owns the franchise rights for the United States, Mexico, Central America, and the Caribbean, presents its financial statements in accordance with accounting principles generally accepted in the United States of America. In contrast, 2703203 Manitoba, Ltd, a Canadian company that owns the worldwide trademarks and franchise rights for Coffee News, reports its financials in Canadian dollars, as this is its functional currency.

For prospective franchisees, this means that when reviewing the financial statements, it's crucial to understand which entity's financials are being examined. If the focus is on the U.S. operations (Coffee News USA, Inc.), the figures will be in U.S. dollars. If the focus is on the global trademarks and franchise rights (2703203 Manitoba, Ltd), the figures will be in Canadian dollars. This distinction is important for accurate financial analysis and comparison.

It is also important to note that 2703203 Manitoba, Ltd prepares its financial statements on the income tax basis of accounting, which differs from generally accepted accounting principles. This difference primarily arises because the company has not provided an accrual for income taxes and has not adopted ASC 606 Revenue from Contracts with Customers. Therefore, these financial statements may not present the financial position and results of operations in the same way as those prepared under generally accepted accounting principles.