What was the amount of Checkers' net operating loss carryforwards as of January 2, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ts will not be realized in a future period. As such, as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor), the valuation allowance has been adjusted to the amount of deferred tax assets, net of reversing deferred tax liabilities, that management believes will not be realized.
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company had net operating loss carryforwards of $13,890 as of January 2, 2023. This figure represents a deferred tax asset, meaning it is an amount that can be used to reduce future income tax obligations.
For a prospective Checkers franchisee, understanding the company's deferred tax assets, including net operating loss carryforwards, can provide insight into its financial health and future tax liabilities. Net operating losses can be carried forward to offset future taxable income, potentially reducing the company's tax burden in subsequent years.
However, it's important to note that the actual value of these carryforwards depends on Checkers' future profitability and the applicable tax laws. Changes in tax laws or the company's financial performance could impact the usability and value of these deferred tax assets. Franchisees should consult with a financial advisor to fully understand the implications of these figures.