What are Level 3 inputs based on for Bft's fair value measurements?

According to Bft's 2025 Franchise Disclosure Document, Level 3 inputs for fair value measurements are unobservable. These inputs reflect assumptions about what market participants would use when pricing an asset or liability.

Bft bases these Level 3 inputs on the best information available, including the company's own data. This means that Bft uses its internal data and expertise to estimate how market participants would value the asset or liability in question.

For a prospective franchisee, this is relevant in understanding how Bft determines the value of its assets and liabilities for financial reporting purposes. While Level 1 inputs are based on readily available market prices and Level 2 inputs are derived from observable market data, Level 3 inputs rely more heavily on Bft's own judgment and internal information. This may be important to consider when evaluating Bft's financial statements and assessing the overall financial health of the company.