Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2018 and 2017 is as follows (in thousands):

	As of December 31, 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	$	5,070	$	-	$	-	$	5,070	$	6,580	$	-	$	-	$	6,580

Reconciliation of all liabilities of Company measured at fair value on a recurring basis using significant unobservable inputs

The table below presents a reconciliation of the contingent consideration from January 1, 2017 to December 31, 2018 (in thousands): 

Balance at January 1, 2017	$	6,400
Fair value adjustments		180
Balance at December 31, 2017		6,580
Fair value adjustments (a)		(1,289)
Cash payments (b)		(221)
Balance at December 31, 2018	$	5,070

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

(b) Cash payments include payments for Revenue Share Year 1 and Revenue Share Year 2 due to timing of payments.

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

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

	As of December 31,
	2018				2017
	Carrying Amount		Fair Value     Level 2		Carrying Amount		Fair Value     Level 2
Senior Secured Credit Facility	$	227,152	$	221,673	$	228,986	$	232,933