What accounting standard does Mr. Sandless use for preparing financial statements?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America. This indicates that Mr. Sandless adheres to a standardized and widely recognized framework for financial reporting. This framework ensures consistency and comparability in financial reporting, which is crucial for potential franchisees when evaluating the financial health and performance of the franchise system.

Specifically, the FDD highlights that management is responsible for the preparation and fair presentation of the financial statements. This responsibility includes designing, implementing, and maintaining internal controls relevant to ensuring the financial statements are free from material misstatement, whether due to fraud or error.

Furthermore, the auditor's role is to obtain reasonable assurance that the financial statements are free from material misstatement and to issue an auditor's report including their opinion. The auditor exercises professional judgment, assesses risks of material misstatement, and examines evidence supporting the amounts and disclosures in the financial statements. This process provides an additional layer of scrutiny and validation, enhancing the reliability of the financial information presented to prospective franchisees.