What accounting standards were used to prepare Dermani Medspa's financial statements?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the company's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. This is explicitly stated within the summary of significant accounting policies.

Specifically, the Dermani Medspa FDD notes that the company uses the accrual basis of accounting. This means that revenues are recognized when earned, and expenses are recognized when incurred, regardless of when cash changes hands. This is a standard accounting practice that provides a more accurate picture of a company's financial performance over time compared to cash-based accounting.

For a prospective Dermani Medspa franchisee, this indicates that the financial statements included in the FDD are prepared using a consistent and widely recognized set of accounting standards. This allows for easier comparison with other franchise opportunities and provides a level of assurance that the financial information is presented fairly and in a manner that is generally accepted by the accounting profession.