What amount of non-cash interest did Checkers have for the period January 3, 2022 (Predecessor)?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the | Periods | For the Per | iods En | ded | ||||
|---|---|---|---|---|---|---|---|---|
| throuş 1 | 17, 2023 gh January , 2024 ccessor) | January 3 through June 16, January 2, 2023 2023 (Predecessor) (Predecessor) | January 3, 2022 (Predecessor) | |||||
| Cash | ||||||||
| Interest paid | $ | 4,619 | $ | 458 | $ | 13,034 | $ | 11,149 |
| Income taxes paid, net of refunds | 18 | 43 | J | 81 | 30 | |||
| Noncash | ||||||||
| Purchased capital assets on account | 300 | 760 | 1,055 | 247 | ||||
| Capital restructuring and interest | - | + | 52,917 | |||||
| Financed insurance premiums | (1,540) | (518) | (1,449) | (823) | ||||
| Noncash new and modified leases | 9,290 | 3,911 | 15,138 | |||||
| Non-cash interest | 2,534 | 13,808 | 9,882 | 9,198 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, non-cash interest for the period ended January 3, 2022 (Predecessor) was $9,198. This figure is part of the company's financial statements, which include consolidated statements of operations, stockholder's equity, and cash flows for various periods. These statements are audited by Ernst & Young LLP.
Non-cash interest generally refers to interest expenses that do not involve an actual cash outlay during the period. This can include items such as amortization of debt discounts or accretion of debt premiums. For a prospective Checkers franchisee, understanding non-cash interest is crucial because it impacts the overall financial health and profitability of the company. While it doesn't affect immediate cash flow, it does reduce the reported net income, which can influence investor perceptions and the company's ability to secure future financing.
The FDD includes financial statements for both Successor and Predecessor periods due to a Recapitalization Agreement. The Predecessor periods refer to the time before the agreement, while Successor periods refer to the time after. This distinction is important for franchisees to understand the financial changes that occurred as a result of the recapitalization. The non-cash interest is listed alongside other cash and non-cash activities, providing a comprehensive view of the company's financial operations.
Prospective franchisees should carefully review all financial statements and notes within the FDD, paying close attention to non-cash items like interest, depreciation, and amortization. Understanding these non-cash adjustments is essential for accurately assessing Checkers' financial performance and future prospects. Consulting with a financial advisor is recommended to fully interpret these statements and their implications for a potential franchise investment.