What was the amount of stock-based compensation for Checkers recorded as of January 2, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
-sixths vest in equal installments on each of the first four anniversaries of December 1, 2021 with 100% of the service-based vesting RSUs and performance-based RSUs vesting as of the consummation of a change of control subject to continued employment through the date of such change of control.
Noncash Compensation
The pretax stock-based compensation cost recognized under the Amended and Restated 2017 Management Incentive Plan was $5.7 million, $1.2 million, and $0.8 million, for the period January 3, 2023 through June 16, 2023 (Predecessor) and for the years ended January 2, 2023 (Predecessor), and January 3, 2022 (Predecessor), respectively. Stock-based compensation is recorded in "general and administrative expenses" in the respective accompanying consolidated statements of operations. The Out-of-Court Restructuring resulted in a change in control, per the
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the pretax stock-based compensation cost recognized under the Amended and Restated 2017 Management Incentive Plan for the year ended January 2, 2023 (Predecessor) was $1.2 million. This compensation is recorded within "general and administrative expenses" on the consolidated statements of operations.
This figure represents the value of stock-based compensation awarded to employees during that fiscal year, reflecting the cost to the company of providing stock options or other equity-based incentives. For a prospective franchisee, this information provides insight into how Checkers incentivizes its management and executive teams. Stock-based compensation is a non-cash expense, meaning it does not directly impact the company's cash flow but does affect its profitability metrics.
The document also mentions that an Out-of-Court Restructuring resulted in a change in control, leading to the accelerated vesting of all outstanding service-based and performance-based awards. As a result, Checkers recognized $5.3 million due to this accelerated vesting as part of the $5.7 million stock-based compensation cost recognized during the period January 3, 2023 through June 16, 2023 (Predecessor). This event is not directly related to the typical operations of a franchise but provides context to the financial activities of Checkers during the period.