Did Bft receive any consideration from the divestiture of the Stride brand?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
surements. ASC 820 establishes a valuation hierarchy for disclosures of the inputs to valuations used to measure fair value.
Notes to Consolidated Financial Statements (amounts in thousands)
This hierarchy prioritizes the inputs into three broad levels as follows:
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date.
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates and yield curves), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Level 3 – Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company's own data.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft divested the Stride brand on February 13, 2024. The divestiture agreement was between Bft, an affiliate of a Member, and a buyer who was a former member of management and shareholder of the Member's parent.
Specifically, Bft received no consideration from the divestiture of the Stride brand. However, the Member will provide transition support to the buyer, including cash payments of approximately $265 over the 12 months following the divestiture. Bft recognized a gain on divestiture of $323, which was included within selling, general, and administrative expenses in the consolidated statements of operations.
The divestiture of the Stride brand allowed Bft to focus its resources on its other brands. The document indicates that this divestiture did not represent a strategic shift that would have a major effect on Bft's operations and financial results, so it was not presented as discontinued operations.