What was the gross amount of accounts receivable for Checkers in the earlier period presented in the financial statements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
member, representing 25% of the CDSI Board of Directors is an employee of the Company. CDSI is not included in the accompanying consolidated financial statements, although the company's contributions to CDSI are included within "restaurant food and paper costs" in the accompanying consolidated statements of operations.
The Company pays invoices on behalf of NPF and CDSI and then bills each for the balance of these invoices each period. This resulted in $2.6 million and $0.7 million of accounts receivable for the NPF and CDSI, respectively,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company presents financial statements for various periods designated as "Successor" or "Predecessor" periods due to a recapitalization agreement. The earlier period presented is the fiscal year ended January 3, 2022 (Predecessor).
However, the provided excerpts from the FDD do not contain a consolidated balance sheet or any other statement that explicitly lists the gross amount of accounts receivable for the fiscal year ended January 3, 2022 (Predecessor). While there is discussion of accounts receivable related to NPF and CDSI, the total gross amount is not specified for that period.
A prospective Checkers franchisee should request a full copy of the audited consolidated balance sheets and related notes for all periods presented, including January 3, 2022 (Predecessor), to determine the exact gross amount of accounts receivable. Understanding the composition and collectability of receivables is crucial for assessing the financial health of Checkers.