What was the amount of Checkers' deferred tax assets before valuation allowance as of January 2, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
mporary differences that give rise to significant portions of the deferred income tax assets and liabilities recognized within "deferred income tax liabilities" in the accompanying consolidated balance sheets as of December 30, 2024 (Successor) and January 1, 2024 (Successor) were as follows:
| For the Year Ended December 30, 2024 (Successor) | For the Period Ended January 1, 2024 (Successor) | |
|---|---|---|
| Deferred tax assets | ||
| Net operating loss carryforwards | $ 58 | $ - |
| Business interest limitation carryforward | 24,472 | 21,518 |
| Accruals | 2,184 | 2,211 |
| Operating ROU assets | 36,262 | 39,355 |
| Difference between book and tax basis of property and equipment | 3,183 | 9,423 |
| Allowance for credit losses | 163 | 69 |
| Stock-based compensation | - | 32 |
| Deferred revenue and other | 2,291 | 2,507 |
| Deferred tax assets | 68,613 | 75,115 |
| Less: valuation allowance | (10,188) | (38,288) |
| Net deferred tax assets | 58,425 | 36,827 |
| Deferred tax liabilities | ||
| Difference between book and tax basis of brands intangible assets | (49,122) | ( |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, information regarding deferred tax assets and valuation allowance is provided for specific periods. However, the exact amount of deferred tax assets before the valuation allowance as of January 2, 2023, is not explicitly stated.
The provided financial statements include data for the period ended January 1, 2024 (Successor) and the year ended December 30, 2024 (Successor), which lists deferred tax assets and the corresponding valuation allowance. For instance, as of January 1, 2024, deferred tax assets totaled $75,115, with a valuation allowance of ($38,288). The net deferred tax assets for this period were $36,827.
While the FDD offers detailed information on deferred tax assets and liabilities for other periods, the specific figure for deferred tax assets before valuation allowance on January 2, 2023, is not disclosed. A prospective franchisee should consider asking Checkers for the specific deferred tax assets before valuation allowance as of January 2, 2023, to gain a clearer understanding of the company's financial position at that time.