Does Exit state that there were any changes in the methodologies used to measure available-for-sale securities between December 31, 2022 and December 31, 2024?

According to Exit's 2025 Franchise Disclosure Document, there were no changes in the methodologies used to measure available-for-sale securities between December 31, 2022, and December 31, 2024. The available-for-sale securities are measured at fair value on a recurring basis using Level 1 inputs. These investments consist of brokered certificates of deposit placed with Thrivent and are carried in the financial statements at fair value.

The amortized cost, fair value, and the corresponding gross unrealized holding gains and losses recognized in accumulated other comprehensive income (loss) on available-for-sale securities are detailed as of December 31 for the years 2024, 2023, and 2022. For example, as of December 31, 2024, the amortized cost was $62,813, with gross unrealized gains of $6,065 and gross unrealized losses of $(2,294), resulting in a gross fair value of $66,584.

For a prospective franchisee, this indicates consistency in how Exit values its available-for-sale securities over the three-year period. The use of Level 1 inputs suggests that the valuations are based on readily available market data, which can provide a degree of transparency and reliability. The franchisee can review these figures to understand how Exit manages and reports its investment securities.