Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Measurements

Liabilities Measured at Fair Value on a Recurring Basis

A summary of the Company’s liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 is as follows (in thousands):

	As of September 30, 2018								As of December 31, 2017
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Liabilities
Contingent consideration	$	5,670	$	—	$	—	$	5,670	$	6,580	$	—	$	—	$	6,580

Reconciliation of Assets And Liabilities Measured Using Significant Unobservable Inputs

The table below presents a reconciliation of all liabilities of the Company measured at fair value on a recurring basis using significant unobservable inputs for the period from January 1, 2018 to September 30, 2018 (in thousands):

	Fair Value of Contingent Consideration Liability
Balance at January 1, 2018	$	6,580
Fair value adjustments(a)		(860)
Cash payments		(50)
Balance at September 30, 2018	$	5,670

Fair value adjustments relate to realignment of future franchise sales assumptions to more closely reflect historical sales trends from inception to date.

Summary of carrying value and fair value of senior secured credit facility

The following table summarizes the carrying value and fair value of the Senior Secured Credit Facility as of September 30, 2018 and December 31, 2017 (in thousands):

	September 30,				December 31,
	2018				2017
	Carrying Amount		Fair Value Level 2		Carrying Amount		Fair Value Level 2
Senior Secured Credit Facility	$	227,610	$	232,027	$	228,986	$	232,933