From the MD&A:

Impairment of Goodwill and Trademarks

The Company considers the franchise business as a separate cash generating unit (“CGU”). The Company

performed its annual impairment test on the franchise business CGU and the valuation based on the forecasted

cash flows and using an 11.5% discount rate indicated impairment. As a result, the Company recognized a total

impairment charge of $15,294 which consisted of $2,444 to goodwill and $12,850 to trademarks in the Quarter.

The after tax impact of these impairment charges were $13,591 and reduced earnings per share by $1.37. The

impairment charges have no impact on the Company's liquidity, cash flow, borrowing capability or operations.