What is the impact of Itan following accounting standards consistent with the FASB codification on fair value measurements?

According to Itan's 2025 Franchise Disclosure Document, the company adheres to accounting standards that align with the FASB codification regarding fair value measurements. This involves defining fair value, establishing a framework for its measurement, and enhancing disclosures related to financial assets and liabilities. However, the FDD states that these fair value measurements have no material financial effects on Itan's financial statements.

For a prospective Itan franchisee, this means that while Itan follows standard accounting practices for fair value, these practices do not significantly impact the company's reported financial results. This suggests that fair value adjustments are either minimal or not a major factor in Itan's overall financial picture.

It is important for potential franchisees to understand that while the franchisor's accounting practices themselves may not have a material impact, understanding the underlying assets and liabilities and how they are valued is still crucial for assessing the financial health and stability of Itan. This information can provide a more comprehensive view of the company's financial position beyond the standardized accounting disclosures.