What was the retained earnings (deficit) for Checkers as of January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
| Stockholders' equity | |||
|---|---|---|---|
| Common stock, $0.01 par value, 100 shares authorized, issued, and outstanding as of | - | - | |
| December 30, 2024 and January 1, 2024 | - | - | |
| Additional paid-in capital | 98,449 | 97,951 | |
| Retained earnings (deficit) | 18,785 | ( 2,656) | |
| Total stockholders' equity | 117,234 | 95,295 | |
| Total liabilities and stockholders' equity | $ 455,780 | $ 460,717 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the retained earnings (deficit) as of January 1, 2024, was $(2,656). This indicates that Checkers had an accumulated deficit rather than retained earnings at that point in time. This figure is a component of the total stockholders' equity.
Retained earnings (or deficits) reflect the cumulative net income or loss of a company over its history, less any dividends paid out to stockholders. A deficit, as in this case, suggests that the company's accumulated losses exceed its accumulated profits. This is a key indicator of the company's financial performance and stability.
For a prospective franchisee, this information is crucial for assessing the financial health of Checkers. While a deficit does not necessarily indicate immediate financial instability, it warrants further investigation into the company's financial history, recent performance, and future prospects. Franchisees should consider this information in conjunction with other financial metrics and seek professional advice to evaluate the overall risk and potential of investing in a Checkers franchise.