What was the provision for credit losses for Checkers for the period from June 17, 2023 through January 1, 2024?
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 June 17, 2023 through January 1, 2024, was $122. This figure represents an estimate of potential losses from customers failing to pay amounts owed to Checkers. It is an accounting accrual, not necessarily cash actually lost during that period.
For a prospective franchisee, the provision for credit losses indicates the level of risk Checkers associates with unpaid accounts. This can arise from various sources, such as chargebacks, disputes, or uncollectible debts. A higher provision suggests Checkers anticipates more difficulty collecting revenue.
It's important to note that this figure is part of Checkers' overall financial statements and should be considered in conjunction with other financial data. Franchisees should investigate the reasons behind credit losses and what measures Checkers takes to mitigate them. Understanding these factors can help a franchisee better manage their own financial planning and risk assessment.