What organization's codification of U.S. GAAP does Exit use for its financial statements?

According to Exit's 2025 Franchise Disclosure Document, the company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). This means that Exit adheres to the standardized guidelines and practices established within the U.S. for financial reporting. These principles ensure that the financial statements are presented fairly and consistently, allowing for meaningful comparisons across different reporting periods and with other companies.

For a prospective franchisee, this indicates that Exit's financial reporting follows a recognized and regulated framework. This can provide a level of confidence in the accuracy and reliability of the financial information presented in the FDD. Understanding that Exit adheres to GAAP can assist potential franchisees in their due diligence process, as they can rely on established standards when reviewing the company's financial performance and position.

It is important for franchisees to consult with their own financial advisors or accountants to fully understand the implications of GAAP and how it affects their investment decision. While GAAP provides a standardized framework, interpreting the financial statements and understanding the underlying business operations requires professional expertise. This will help ensure that franchisees make informed decisions based on a comprehensive understanding of Exit's financial health and reporting practices.