Did Craters & Freighters hold any investments using Level 2 inputs as of December 31, 2024?

According to Craters & Freighters's 2025 Franchise Disclosure Document, the company did not hold any investments using Level 2 or Level 3 inputs as of December 31, 2024. Instead, Craters & Freighters's investments in stocks, mutual funds, and exchange traded funds are valued using Level 1 inputs.

The FDD defines Level 1 inputs as 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, requiring the entity to develop its own assumptions.

This indicates that Craters & Freighters's investment strategy focuses on more liquid and readily valued assets. For a prospective franchisee, this information provides insight into the financial management practices of the franchisor, specifically regarding how they value their investments. The FDD also states that there were no changes in the valuation methodology from the prior year.