For Checkers, what was the net total of accounts receivable on January 1, 2024, after accounting for the allowance?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
d administrative expenses on the consolidated 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 net total of accounts receivable on January 1, 2024, was $7,399. This figure represents the gross accounts receivable of $7,913, less an allowance of $514 for doubtful accounts.
For a prospective Checkers franchisee, understanding accounts receivable is crucial. Accounts receivable represent the money owed to the business by its customers, typically from sales made on credit. The allowance for doubtful accounts is an estimate of the amount of accounts receivable that the company does not expect to collect. The net accounts receivable provides a more realistic view of the assets that Checkers can expect to realize.
It's important to note that these figures are specific to the 'Successor' period, which, as defined in the FDD, refers to the period from June 17, 2023, to January 1, 2024. This distinction is relevant because Checkers' fiscal reporting periods consist of 52 or 53 weeks ending on the Monday closest to December 31. Therefore, the January 1, 2024 figure represents a partial fiscal year.
Franchisees should monitor their own accounts receivable closely to ensure timely collection and minimize bad debt. Understanding the franchisor's accounting practices, as detailed in the FDD, can help franchisees better manage their own finances and assess the overall financial health of the Checkers franchise system.