For Anago, how are closed-in mutual funds valued for the purposes of financial reporting?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
eivable also as of December 31, 2024, 2023, and 2022 consist of franchise notes receivable for the initial purchases of the master franchisee territories totaling $46,724, $54,794, and $60,925, respectively.
NOTE D - INVESTMENTS
The Company's investments are recorded at the fair market value based on quoted prices in active markets using level 1 inputs on the fair value hierarchy chart. The Company's investments that are listed on the U.S. e
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, closed-in mutual funds, which are investments that allocate funds through single public offerings, are valued based on quoted prices on the last trading date of the principal market on or before December 31, 2024, 2023, and 2022. As of December 31, 2024, the fair market value of these investments totaled $788,540. As of December 31, 2023, the fair market value totaled $264,605, and as of December 31, 2022, the fair market value totaled $547,510. These funds have been invested in domestic mutual funds.
This valuation method provides transparency into how Anago accounts for its investments in closed-in mutual funds. Prospective franchisees can see the fluctuations in the fair market value of these investments over the past three years, which can offer insights into the company's financial management and investment strategies.
It's important to note that the value of these investments can fluctuate based on market conditions, which could impact Anago's overall financial health. Franchisees should consider these factors when assessing the financial stability of the franchisor.