What are examples of Level 2 inputs for fair value measurement as defined by Aunt Millies Bakeries?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, Level 2 inputs for fair value measurement are defined as significant other observable inputs, excluding Level 1 prices. These include quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

In simpler terms, Level 2 inputs are used to determine the fair value of assets when there isn't an active market for the exact same asset (Level 1). Instead, Aunt Millies Bakeries would look at comparable assets or less active markets to find pricing information. This could involve assessing the value of similar marketable securities or using available market data to confirm the value of an asset.

This distinction is important because it shows how Aunt Millies Bakeries values its assets and liabilities. The company prioritizes observable inputs to minimize subjective assumptions. For a potential franchisee, understanding these valuation methods can provide insight into the financial practices and transparency of Aunt Millies Bakeries.