What was the provision for credit losses for Checkers for the period from January 3, 2023 through June 16, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Net income | | - | | - | | 21,260 | | 21,260 | | | | Balances at December 30, 2024 | $ | - | $ | 98,449 | $ | 18,785 | $ | 117,234 | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Successor | Predecessor | ||||||
|---|---|---|---|---|---|---|---|
| Year Ended December 30, | 2024 | Period from June 17, 2023 through | January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | |||
| Operating activities: | |||||||
| Net income (loss) | $ | 21,260 | $ | (2,570) | (91,106) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) |
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 from January 3, 2023, through June 16, 2023, was $94. This figure represents an estimate of potential losses from uncollectible accounts receivable during that specific timeframe.
For a prospective Checkers franchisee, understanding the provision for credit losses can offer insights into the financial management and potential risks associated with customer credit. While a relatively small provision might suggest effective credit control, it's essential to consider the broader economic conditions and the specific customer base of the franchise.
Franchisees should inquire about Checkers's credit policies, typical receivable collection periods, and the methods used to estimate potential credit losses. Understanding these factors will help franchisees better assess the financial health and stability of the franchise system and manage their own financial planning.