What calendar year basis of reporting has Desi District adopted for its financial statements?
Desi_District 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 52)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, the company has adopted the calendar year as its basis of reporting. This means that Desi District'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 common and straightforward approach to financial reporting. It simplifies comparisons with other businesses and industry benchmarks that also typically follow the calendar year. This standardization makes it easier to track Desi District's financial performance over time and compare it against competitors or other franchise systems.
Furthermore, the FDD notes that Desi District's fiscal year ends on December 31. This confirms that the calendar year basis of reporting is consistently applied in their financial statements. This alignment is beneficial for franchisees as it provides a clear and predictable timeframe for assessing the financial health and performance of the franchise.