How often are Exit's investments reviewed for impairment by management?

According to Exit's 2025 Franchise Disclosure Document, the company's investments are reviewed annually for impairment by its management team. This annual review is a standard accounting practice to ensure that the recorded value of the investments aligns with their actual recoverable value. Impairment occurs when the market value of an investment falls below its book value, indicating a potential loss.

The FDD states that no impairments were recognized by Exit during the years ended December 31, 2024, 2023, and 2022. This suggests that the investments held by the company maintained their value during this period, and no adjustments were necessary.

For a prospective franchisee, this annual review process indicates that Exit's management is actively monitoring the financial health of its investments. While the absence of recognized impairments in recent years is a positive sign, it is important to note that future performance may vary, and impairments could be recognized in the future if investment values decline.