What financial instruments are included in Exit's financial instruments?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's financial instruments include cash, accounts receivable, notes receivable, loans receivable, advances to related parties, bank overdrafts, accounts payable and accrued liabilities, advances from related parties, notes payable and mortgage payable.
Fair Value:
The carrying amounts for cash, accounts receivable, accounts payable and accrued liabilities on the balance sheet approximates their fair value because of the short-term maturities of these items.
The fair value of the notes receivable, loans receivable, advances to and from related parties and notes payable is not determinable, as these items are non-interest bearing and there is no comparable market data for them.
The fair value of the mortgage payable approximates its carrying value as it bears interest at market rates for similar debt.
Foreign Exchange Risk:
Certain amounts of the Company's revenue and expenses are incurred in Canadian dollars and are therefore subject to gains and losses due to fluctuation in the U.S. dollar relative to the Canadian dollar. The Company does not use derivative instruments to reduce its exposure to foreign exchange risk.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the company's financial instruments include cash, accounts receivable, notes receivable, loans receivable, advances to related parties, bank overdrafts, accounts payable and accrued liabilities, advances from related parties, notes payable and mortgage payable. The carrying amounts for cash, accounts receivable, accounts payable, and accrued liabilities on the balance sheet approximate their fair value because of the short-term maturities of these items.
However, the fair value of the notes receivable, loans receivable, advances to and from related parties, and notes payable is not determinable. These items are non-interest bearing, and there is no comparable market data for them. The fair value of the mortgage payable approximates its carrying value as it bears interest at market rates for similar debt.
Additionally, certain amounts of Exit's revenue and expenses are incurred in Canadian dollars and are therefore subject to gains and losses due to fluctuation in the U.S. dollar relative to the Canadian dollar. Exit does not use derivative instruments to reduce its exposure to foreign exchange risk.