What was the amount of revenue recognized during the period for Checkers' successor financial statement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
As a result of the Recapitalization Agreement, the Company is presenting a successor period for the fiscal year ended December 30, 2024 and the period of June 17, 2023, through January 1, 2024 ("Successor Periods") and predecessor periods of January 3, 2023 through June 16, 2023 and fiscal years ended January 2, 2023 and January 3, 2022 (each individually referred to as a "Predecessor Period" and collectively as the "Predecessor Periods"), within the audited financial statements. See footnote 1 within the audited financial statements for further information relating to the transaction.
Attached to this Franchise Disclosure Document as Exhibit H are our audited consolidated balance sheets as of December 30, 2024 (Successor), January 1, 2024 (Successor) and January 2, 2023 (Predecessor), and the related consolidated statements of operations, stockholder's equity (deficit) and cash flows for the fiscal year ending December 30, 2024 (Successor), the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor), and the fiscal years ending January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor), and the related notes.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company underwent an Out-of-Court Restructuring, which led to the creation of "Predecessor" and "Successor" periods for financial reporting. The "Predecessor" period reflects financials before June 16, 2023, while the "Successor" period reflects financials after this date. The FDD includes audited consolidated statements of operations for the fiscal year ended December 30, 2024 (Successor) and for the period from June 17, 2023, through January 1, 2024 (Successor).
However, the excerpt does not explicitly state the total revenue recognized during either of these Successor periods. Instead, it focuses on explaining the restructuring and its impact on financial statement presentation, including changes in accounting basis and the non-comparability of Successor and Predecessor periods. The document also details specific transactions, such as the recognition of transaction costs related to the restructuring and sales of restaurants in previous years.
Therefore, a prospective Checkers franchisee should consult the full audited financial statements in Exhibit H of the FDD to find the specific revenue figures for the Successor periods. They should also inquire with Checkers' management about the factors influencing revenue during these periods and how the restructuring has affected the company's financial performance.