When preparing Crowne Plaza's consolidated financial statements, what is management required to evaluate regarding the company's ability to continue as a going concern?

According to Crowne Plaza's 2025 Franchise Disclosure Document, when preparing the consolidated financial statements, management is responsible for evaluating whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for one year after the date the consolidated financial statements are available to be issued. This evaluation is a critical part of ensuring the financial statements are presented fairly and accurately reflect the company's financial position.

This "going concern" assessment is based on conditions or events considered in the aggregate. This means management must look at all available information and potential risks collectively, rather than focusing on isolated issues. The evaluation is forward-looking, requiring management to consider the company's prospects and potential challenges over the next year.

For a prospective Crowne Plaza franchisee, this indicates that the company's management is diligent in assessing the financial health and stability of the organization. It reflects adherence to accounting principles generally accepted in the United States of America. This assessment provides stakeholders, including potential franchisees, with confidence in the reliability of the financial statements and the company's ability to meet its obligations in the near term.