How are investments stated for Coffee News?

According to the 2025 Coffee News Franchise Disclosure Document, the company's investments are stated at fair value. This fair value is determined by the last reported sales price on the last business day of the fiscal year. Furthermore, all investments are publicly traded and measured at fair market value on a recurring basis, categorized as level 1 assets.

For a prospective Coffee News franchisee, this information is relevant in understanding the financial practices of the franchisor, Coffee News USA, Inc. Knowing that investments are valued at fair market value provides transparency into how the company manages and reports its assets. The classification as 'level 1' indicates that these investments are the most liquid and easily valued, as they are based on readily available market prices.

This accounting practice is fairly standard, as fair value accounting is a common method for publicly traded investments. It assures that the financial statements reflect current market conditions. Additionally, the FDD states that Coffee News USA opened an investment account in 2021 and funded it with matured certificates of deposit.