What were Checkers' accounts and notes receivable, net, as of January 2, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Ernst + Young LLP
August 13, 2024
| Janu | ary 1, 2024 | Janua | ary 2, 2023 | |
|---|---|---|---|---|
| (St | iccessor) | (Pre | edecessor) | |
| Assets | ||||
| Current assets: | 0 | |||
| Cash and cash equivalents | $ | 12,557 | $ | 18,049 |
| Accounts and notes receivable, net | 7,399 | 6,143 | ||
| Inventory | 2,178 | 2,541 | ||
| Prepaid expenses |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company's accounts and notes receivable, net, as of January 2, 2023 (Predecessor) were $6,143,000.
Accounts and notes receivable represent money due to Checkers from various sources, such as franchise royalties, fees, sublease rents, delivery sales, and retail royalties. These receivables are presented net of an allowance for credit losses, which is an estimate of the amounts that may not be collected. Franchisee-related accounts receivable are typically due within 10 days of billing, and in some cases, Checkers directly withdraws funds from the franchisee's bank account on a predetermined day.
For a prospective Checkers franchisee, understanding the accounts receivable is crucial because it reflects the efficiency of collecting payments from franchisees and other parties. A higher accounts receivable balance might indicate potential issues with timely payments, while a lower balance suggests effective collection practices. Reviewing the trend of accounts receivable over time can provide insights into the financial health and stability of Checkers and its franchisees.