What was the provision for credit losses for Checkers for the period ended January 2, 2023 (Predecessor)?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Periods Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| June 17, 20 through Janua 2024 (Succes | гу 1, | throug | ary 3, 2023 gh June 16, Predecessor) | ry 2, 2023 lecessor) | ry 3, 2022 decessor) | |||
| Operating activities | ||||||||
| Net loss | 2,570) | S | (91,106) | $ | (23,624) | $ | (10,066) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating acti | ivities: | |||||||
| Depreciation and amortization | 4,638 | 8,552 | 15,733 | 17,193 | ||||
| Amortization of deferred financing costs | 54 | 892 | 1,771 | 1,570 | ||||
| Provision for credit losses | 122 | 94 | 134 | 274 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the provision for credit losses for the period ended January 2, 2023 (Predecessor) was $134.
This figure represents an estimate of potential losses from customers failing to pay their debts to Checkers. It is an accounting measure that reflects the expected uncollectible amounts from accounts receivable. The provision for credit losses can fluctuate based on factors such as economic conditions and the creditworthiness of Checkers' customers.
For a prospective franchisee, understanding the provision for credit losses can provide insights into the financial health and risk management practices of Checkers. It's important to note that this figure is part of a larger financial statement and should be analyzed in conjunction with other financial data to gain a comprehensive understanding of the company's financial performance.