As of December 31, 2023, did Auntie Annes have any financial instruments measured at fair value?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
At December 31, 2023 and December 25, 2022, the Company had no financial instruments that are measured at fair value.
Fair Value Measurements
The guidance for fair value measurements establishes the authoritative definition for fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, as of December 31, 2023, the company did not have any financial instruments that were measured at fair value. The document also states that this was also the case as of December 25, 2022.
Fair value, as defined in the FDD, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This is also known as the exit price.
This information is relevant to potential franchisees as it provides insight into Auntie Annes's financial practices and how they value their assets and liabilities. The absence of financial instruments measured at fair value may indicate a simpler financial structure or a preference for valuing assets and liabilities using other methods.