In the Gokhale Method FDD, what accounting principles are followed when making estimates for financial statements?

According to the 2024 Gokhale Method FDD, the company's financial statements are prepared following accounting principles generally accepted in the United States of America. These principles are consistently applied when creating the financial statements. Management is responsible for the integrity and objectivity of these financial statements.

When preparing the financial statements, Gokhale Method's management makes certain estimates and assumptions relating to the reporting of assets, liabilities, results of operations, and the disclosure of contingent assets and liabilities. These estimates are necessary to comply with generally accepted accounting principles in the United States of America. However, the FDD notes that actual results could differ from these estimates.

Prospective franchisees should understand that the financial statements provided in the FDD, and any financial projections they may receive, rely on these estimates. While the company adheres to standard accounting practices, the use of estimates introduces an element of uncertainty. It is advisable for potential franchisees to consult with a financial professional to assess the reasonableness of these estimates and their potential impact on the franchisee's financial performance.