What was The Standardx's estimated fair value of financing receivables at December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
ately $440 million and $133 million at December 31, 2024 and December 31, 2023, respectively. The fair values, which are classified as Level Three in the fair value hierarchy, are estimated using discounted future cash flow models. The principal inputs used are projected future cash flows and the discount rate, which is generally the effective interest rate of the loan.
7. ACQUISITIONS AND DISPOSITIONS
Acquisitions
Bahia Principe—Du
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the estimated fair value of financing receivables at December 31, 2024, was approximately $440 million. The FDD also notes the fair value at December 31, 2023, was approximately $133 million. These values are classified as Level Three in the fair value hierarchy.
The fair values are determined using discounted future cash flow models. The key inputs for these models are projected future cash flows and the discount rate, which typically aligns with the effective interest rate of the loan. Level Three assets are those whose fair values are based on unobservable inputs, reflecting The Standardx's own assumptions about market participant assumptions.
For a prospective franchisee, this indicates the scale of The Standardx's financing operations and how the company values these assets. Understanding the assumptions and models used to determine fair value can be important for assessing the financial health and risk profile of The Standardx. It is important to note that these are estimates and are subject to change based on market conditions and the performance of the underlying loans.