On what basis are Coffee News investments measured?

According to the 2025 Coffee News FDD, the company's investments are measured at fair market value on a recurring basis. These investments are also considered level 1 and are publicly traded. This indicates that Coffee News uses readily available market data to determine the value of its investments.

For a prospective franchisee, this information is relevant in understanding the financial management practices of Coffee News. Knowing that investments are valued at fair market value provides transparency into how the company manages its assets. The classification as "level 1" suggests that these investments are the most liquid and easily valued, reducing potential risks associated with valuation.

This approach aligns with standard accounting practices, ensuring that the financial statements accurately reflect the current value of Coffee News's investments. Franchisees can take comfort in knowing that the company's financial reporting is based on widely accepted and verifiable valuation methods.