Does Monicals Pizza acknowledge the possibility of a discrepancy between estimated and actual results in their consolidated financial statements?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the company acknowledges that the preparation of consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions can affect the reported amounts of assets, liabilities, income, and expenses. As a result, Monicals Pizza states that the actual results could differ from those estimates. This disclosure appears within the summary of significant accounting policies attached to the consolidated financial statements.

For a prospective Monicals Pizza franchisee, this statement means that the financial figures presented in the FDD, such as revenues, expenses, and profits, are based on estimates made by the company's management. While these estimates are made in accordance with generally accepted accounting principles, they are not guarantees of future performance. Various factors can cause actual results to deviate from these estimates, including changes in economic conditions, competition, and operating costs.

This acknowledgement is a standard accounting practice, as it is impossible to predict the future with certainty. Franchisees should understand that past performance is not necessarily indicative of future results. It is important for potential franchisees to conduct their own due diligence, including reviewing the financial statements carefully and consulting with financial advisors, to assess the potential risks and rewards of investing in a Monicals Pizza franchise.

Monicals Pizza's disclosure highlights the importance of not relying solely on the franchisor's financial statements when making investment decisions. Prospective franchisees should consider this statement in conjunction with other information provided in the FDD and their own independent research to make an informed decision.