As of January 1, 2024, what was the gross amount of accounts receivable for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ted statements of operations.
NOTE 5 - ACCOUNTS AND NOTES RECEIVABLE, NET
The following table summarizes the Company's receivables and allowances as of December 30, 2024 (Successor) and January 1, 2024 (Successor):
| December 30, 2024 (Successor) | January 1, 2024 (Successor) |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the gross amount of total accounts receivable as of January 1, 2024, was $7,913. After subtracting an allowance of $514, the net accounts receivable was $7,399.
Accounts receivable represent money owed to Checkers by its customers or other parties for goods or services already provided. The 'gross' amount is the total before accounting for potential uncollectible amounts. The 'allowance' is an estimate of the portion of accounts receivable that may not be collected.
For a prospective Checkers franchisee, understanding accounts receivable is crucial for managing cash flow and assessing the financial health of the business. While the FDD provides this figure at the corporate level, franchisees will also generate their own accounts receivable. Prudent financial management involves minimizing uncollectible accounts and ensuring timely collection of outstanding payments to maintain a healthy financial position.