What was the amount of the Second Lien Credit Agreement for Checkers as of January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
s pro rata share of 5% of the equity of Topco. After the Out-of-Court Restructuring, lenders which own a significant percentage of Topco's equity are included in the below table as related parties. Refer to Note 13. Debt, Financing Obligations and Credit Facilities.
As of
A summary of related-party transactions follows:
| Balance sheet amounts | ary 1, 2024 | | ary 2, 2023 | |----------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the amount of the Second Lien Credit Agreement as of January 1, 2024, was $1,000. This figure is part of Checkers' balance sheet amounts presented in thousands of dollars. This indicates a significant decrease from the $31,066,000 reported on January 2, 2023.
The Second Lien Credit Agreement is a form of debt financing used by Checkers. The substantial reduction in the Second Lien Credit Agreement balance from 2023 to 2024 could be due to several factors, such as repayments, debt restructuring, or conversion of debt to equity.
Prospective franchisees should be aware of Checkers' debt obligations as they can impact the financial stability and operational decisions of the company. Understanding the context behind changes in debt levels requires further investigation, including reviewing the complete financial statements and notes provided in the FDD and potentially consulting with a financial advisor.