What were Checkers' cash and cash equivalents as of January 2, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
nded June 16, 2023 refers to the period from January 3, 2023 to June 16, 2023 (Predecessor). The period ended January 2, 2023 (Predecessor) refers to the 52-week period ended January 2, 2023. The period ended January 3, 2022 (Predecessor) refers to the 53-week period ended January 3, 2022.
Cash and Cash Equivalents
The Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents. The Company maintains cash and cash equivalent balances with financial institutions in excess of federal insured limits. The Company has not experienced any losses related to these balances, and it believes credit risk to be minimal.
The Co
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company considers highly liquid instruments with original maturities of three months or less as cash equivalents. These balances are maintained with financial institutions, sometimes exceeding federal insured limits. Checkers states they have not experienced any losses related to these balances and believes the credit risk to be minimal.\
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Checkers also has restricted cash balances related to certain letters of credit and debt arrangements, which are included within cash and cash equivalents on the consolidated balance sheets. As of January 2, 2023, Checkers had restricted cash balances of $0.4 million. \
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In summary, while the FDD defines how Checkers accounts for cash and cash equivalents, it only specifies the restricted cash balance as of January 2, 2023. The document does not state the total amount of cash and cash equivalents held by Checkers as of January 2, 2023. A prospective franchisee should inquire with Checkers about the specific amount of unrestricted cash and cash equivalents the company held at that time to gain a clearer picture of their financial position.