What was the reported total of current assets for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
TES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**
The following tables summarize the purchase consideration and the purchase price allocation to estimated fair value of the assets acquired and liabilities assumed as of the acquisition date, June 16, 2023:
| Fair value of stock consideration Current assets Cash and cash equivalents Accounts and notes receivable, net Inventory Prepaid expenses Other current assets | $ 97,819 17,613 5,828 3,105 3,690 1,600 |
|---|---|
| Total current assets | 31,836 |
| Property and equipment, net | 26,300 |
| Operating right-of-use assets | 152,445 |
| Finance right-of-use assets | 14,831 |
| Intangible assets | 198,900 |
| Favorable leasehold interests | 2,080 |
| Other assets | 2,584 |
| Total assets | $ 428,976 |
| Current liabilities Accounts payable Accrued liabilities Accrued wages and benefits Current portion of deferred revenue Current maturities of long-term debt, and financing obligations Current portion of accrued self-insurance Current portion of operating lease liabilities Current portion of finance lease liabilities | $ (3,126) (21,547) (3,829) (2,761) (923) (1,565) (11,939) (374) |
| Total current liabilities | (46,064) |
| Deferred income tax liabilities | (48,326) |
| Operating lease liability | (158,850) |
| Finance lease liability | (16,548) |
| Long-term debt, less current maturities and deferred financing costs | (74,438) |
| Financing obligations, less current maturities | (7,893) |
| Deferred revenue, le |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the total current assets reported are $31,836. This figure represents the sum of Checkers's cash and cash equivalents ($17,613), accounts and notes receivable, net ($5,828), inventory ($3,105), prepaid expenses ($3,690), and other current assets ($1,600). These assets are considered current because they are expected to be converted into cash within one year.
For a prospective franchisee, understanding the composition of current assets is crucial. It provides insight into the company's liquidity and short-term financial health. A healthy level of current assets indicates that Checkers can meet its short-term obligations and invest in future growth.
However, it's important to note that the value of these assets can fluctuate. For example, changes in consumer demand or supply chain disruptions could impact inventory levels and accounts receivable. Therefore, franchisees should monitor these figures closely and consider their potential impact on the company's overall financial performance. Reviewing the balance sheets from January 1, 2024, and January 2, 2023, shows total current assets of $30,309 and $33,481, respectively, indicating some fluctuation in this value year over year.