For Checkers, which auditing firm audited the consolidated financial statements as of January 1, 2024, for the period from June 17, 2023 through January 1, 2024, and the period from January 3, 2023 through June 16, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The consolidated financial statements of the Company as of January 1, 2024 (Successor), for the period from June 17, 2023 through January 1, 2024 (Successor) and the period from January 3, 2023 through June 16, 2023 (Predecessor) were audited by other auditors, who expressed an unmodified opinion on those consolidated financial statements in their report dated August 13, 2024.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the consolidated financial statements as of January 1, 2024, for the period from June 17, 2023 through January 1, 2024, and the period from January 3, 2023 through June 16, 2023 were audited by Ernst & Young LLP. Their report date was August 13, 2024, and Checkers received an unmodified opinion.
It is typical for franchisors to have their financial statements audited by an independent firm. Franchisees rely on these audited statements to assess the financial health and stability of the franchise system. An unmodified opinion, as received by Checkers, indicates that the auditors found no material misstatements in the financial statements, which is a positive sign for prospective franchisees.
However, the 2025 FDD also states that Grant Thornton LLP audited the consolidated financial statements as of December 30, 2024. This means that Checkers changed auditing firms between January 1, 2024 and December 30, 2024. A prospective franchisee may want to inquire about the reason for this change.