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.