What event on June 16, 2023, resulted in BossCo Holdings deconsolidating, which included Checkers?

According to Checkers' 2025 Franchise Disclosure Document, on June 16, 2023, Checkers consummated an Out-of-Court Restructuring. As a result of this restructuring, Burger BossCo and its subsidiaries, including Checkers, were deconsolidated from BossCo Holdings. Newly issued equity of Burger BossCo was then issued to Checkers Topco, LLC. The secured creditors of Holdings and Burger BossCo acquired all of the equity of Topco. Furthermore, the equity of Burger BossCo, which was previously owned by BossCo Holdings, was repurchased by Burger BossCo for a nominal amount.

This restructuring and deconsolidation have significant implications for Checkers' financial reporting. The financial statements are divided into "Predecessor" periods (prior to June 16, 2023) and "Successor" periods (subsequent to June 16, 2023) to reflect the change in control and accounting basis. The assets and liabilities were recorded at their fair values at the date of the Out-of-Court Restructuring, which means that the financial statements from these two periods are not directly comparable.

For a prospective franchisee, this information is crucial for understanding the financial history and current financial standing of Checkers. The Out-of-Court Restructuring represents a significant event that altered the company's ownership and capital structure. While the FDD provides financial statements for both the Predecessor and Successor periods, it is important to recognize that these statements are prepared under different accounting bases and may not be directly comparable. Franchisees should carefully review these financial statements and seek professional advice to fully understand the implications of the restructuring on Checkers' financial performance and future prospects.