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Note 11 - Commitments and Contingencies
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

Note 11 - Commitments and Contingencies

 

Franchise Acquisition Indebtedness

Several franchisees have in the past financed the purchase of several offices with promissory notes. In some instances, this financing resulted in certain franchises being considered VIEs. We have determined that we are not required to consolidate these entities because we are not the primary beneficiary of these entities as we do not have the power to direct the activities that most significantly impact their economic performance. If these franchises default on these notes, our maximum exposure to loss primarily consists of the outstanding balances of these notes, net of amounts that may be recovered through the resale of repossessed offices. The outstanding balance of notes receivable from franchisees determined to be VIEs was approximately $5.7 million and $6.4 million at  June 30, 2026 and at  December 31, 2025, respectively. 

 

Legal Proceedings

We are subject to various legal and administrative proceedings arising from time to time in the ordinary course of business. Based on information currently available to us, we do not expect material uninsured losses to arise from any of these matters. We believe the outcome of these matters, even if determined adversely, will not have a material adverse effect on our business, financial condition, results of operations, or liquidity and capital resources. There have been no material developments in our legal proceedings as of  June 30, 2026.