How does Itan define fair value measurements?

According to Itan's 2025 Franchise Disclosure Document, the company adheres to accounting standards consistent with the FASB (Financial Accounting Standards Board) codification regarding fair value measurements. This codification defines fair value, establishes a framework for measuring it, and enhances disclosures about these measurements for all financial assets and liabilities.

For a prospective Itan franchisee, this means that Itan's financial statements are prepared in accordance with generally accepted accounting principles (GAAP) which include specific guidelines on how to determine and report the fair value of its assets and liabilities. This provides a level of standardization and transparency in Itan's financial reporting.

The FDD states that these fair value measurements have no material financial effects on Itan's financial statements. This suggests that the impact of these measurements on the overall financial picture of the company is not significant. However, it is important for potential franchisees to understand how these measurements are made, as they can affect the perceived value of certain assets and liabilities.

While the FDD mentions adherence to FASB standards, it does not provide specific details on how Itan determines fair value in practice. A prospective franchisee may want to ask Itan for more information on the specific methods and assumptions used to measure fair value, as well as any potential risks or uncertainties associated with these measurements.