On what accounting principles basis are Cream's financial statements prepared?

According to Cream's 2025 Franchise Disclosure Document, the financial statements are prepared on the basis of generally accepted accounting principles (GAAP). Specifically, Note 2 to the financial statements clarifies that the company's financial statement has been prepared based on GAAP. This is a standard practice, ensuring uniformity and comparability in financial reporting.

Cream's management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates. This acknowledgment highlights the inherent uncertainties in financial reporting, where judgments and assumptions play a significant role. Franchisees should recognize that these estimates can impact the financial picture presented.

Furthermore, the auditor's report included in the FDD states that the audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). This indicates that an independent auditor has reviewed Cream's financial statements and believes they are fairly presented in accordance with GAAP. This provides a level of assurance to potential franchisees regarding the reliability of the financial information provided.