For the Atwell Suites share-based compensation, how was the expected volatility determined for the share award?

According to the 2025 FDD, the expected volatility for Atwell Suites' share-based compensation is determined by calculating the historical volatility of the Parent's share price. This calculation corresponds to the expected life of the share award.

For a prospective Atwell Suites franchisee, this means that the volatility of the parent company's stock is a key factor in determining the value of share-based compensation. Historical data on the parent company's stock performance is analyzed to estimate future volatility, which affects the valuation of share awards.

Understanding how share-based compensation is valued can be important for franchisees, especially if they or their employees are eligible for such benefits. The volatility of the parent company's stock can impact the perceived and actual value of these awards, influencing their attractiveness as part of a compensation package.