Did Craters & Freighters change its valuation methodology from the prior year?

According to the 2025 FDD, Craters & Freighters did not change its valuation methodology from the prior year. Specifically, the FDD notes that the company's investments in stocks, mutual funds, and exchange traded funds are valued using Level 1 inputs, and that Craters & Freighters does not hold any investments using Level 2 or 3 inputs.

ASC 820, "Fair Value Measurement," provides a framework for measuring fair value of certain assets and liabilities. It enhances disclosures about how the fair value was determined based on the significant levels of inputs used to determine the fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in active markets for similar assets or liabilities and other external inputs that are observable. Level 3 inputs are unobservable inputs in which there is little or no market data, which requires the entity to develop its own assumptions.

This indicates that Craters & Freighters consistently uses the same method (Level 1 inputs) for valuing its investments in stocks, mutual funds, and exchange-traded funds. This consistency can provide a level of predictability for prospective franchisees when reviewing and analyzing the company's financial statements.