Regarding The Standardx's deferred consideration liability related to the Bahia Principe Transaction, what was the imputed interest rate used for accretion of the discount?

According to The Standardx's 2025 Franchise Disclosure Document, the deferred consideration liability related to the Bahia Principe Transaction was subject to an imputed interest rate. The accretion of the discount, which is recognized as interest expense, is based on an imputed interest rate of approximately 4.8%.

This means that when The Standardx calculated the present value of its future payment obligations for the Bahia Principe acquisition, it used a discount rate that reflects the time value of money and the risk associated with the payment. This discount was then amortized over time, with the imputed interest rate determining the amount of interest expense recognized each period. The unamortized discount was $4 million at both March 31, 2025, and December 31, 2024.

For a prospective franchisee, this detail provides insight into how The Standardx manages its acquisitions and accounts for deferred payments. While it may not directly impact the franchisee's day-to-day operations, understanding the financial structure of The Standardx can be beneficial for assessing the overall financial health and stability of the company.