What is the auditor's opinion regarding the detection of material misstatements in Checkers' financial statements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors Checkers Drive-In Restaurants, Inc. and Subsidiaries
Opinion
We have audited the consolidated financial statements of Checkers Drive-In Restaurants, Inc. and Subsidiaries (the "Company"), which comprise the consolidated balance sheet as of December 30, 2024 (Successor) and the related consolidated statement of operations, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 30, 2024 (Successor), and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for opinion
We conducted our audit of the consolidated financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Other Matter
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, Grant Thornton LLP issued an independent auditor's report on the company's consolidated financial statements for the year ending December 30, 2024. Their opinion is that the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Checkers as of December 30, 2024, and the results of its operations and cash flows for the year then ended. This opinion is in accordance with accounting principles generally accepted in the United States of America.
Additionally, the FDD notes that Ernst & Young LLP audited the consolidated financial statements of Checkers for the period ending January 1, 2024, and for the period from June 17, 2023, through January 1, 2024, and the period from January 3, 2023, through June 16, 2023. Ernst & Young issued an unmodified opinion on those consolidated financial statements in their report dated August 13, 2024.
In both cases, the auditors believe that the audit evidence they obtained was sufficient and appropriate to provide a basis for their audit opinion. This suggests that a potential franchisee can rely on the financial statements presented in the FDD, as they have been reviewed by independent auditors and are deemed to be fairly presented.