What was the total amount of accrued liabilities for Checkers as of June 16, 2023?
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 | ||||
| Deferred income tax expense (benefit) | 4 | (7,529) | (2,961) | (215) | ||||
| Noncash operating lease expense, net | 5,490 | 6,878 | 14,914 | |||||
| Right-of-use asset amortization for finance lease | 455 | 262 | 204 | |||||
| Change in favorable leasehold interests | 232 | 146 | - | - | ||||
| Change in unfavorable leasehold interests | (31) | (29) | * | - 4 | ||||
| Noncash stock based compensation | 132 | 5,720 | 1,208 | 758 | ||||
| Noncash interest on long-term debt | 2,534 | 13,808 | 9,882 | 9,198 | ||||
| Impairment of long-lived assets | 623 | 66,633 | 4,763 | |||||
| Net loss on disposal of fixed assets | 670 | 839 | 606 | 1,305 | ||||
| Net loss on sales of restaurants | - | 238 | 3 | |||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Decrease (increase) in accounts and notes receivable, net | 1,693) | 221 | 522 | (685) | ||||
| Decrease (increase) in inventory | 927 | (564) | (153) | (449) | ||||
| Decrease (increase) in prepaid expenses | 1,618) | 1,137 | 1,009 | (797) | ||||
| Decrease (increase) in other current assets | ( | 1,241) | 105 | 931 | 159 | |||
| Decrease (increase) in other noncurrent assets | 231 | 602 | (78) | 9. | ||||
| (Decrease) increase in accounts payable | (16) | (247) | 895 | (142) | ||||
| (Decrease) increase in accrued liabilities, accrued wages and benefits, deferred | ||||||||
| revenue, self-insurance, and long-term liabilities | + | 7,774) | 9,416 | (1,598) | (1,205) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the change in accrued liabilities, accrued wages and benefits, deferred revenue, self-insurance, and long-term liabilities from January 3, 2023, through June 16, 2023, was an increase of $9,416. This figure reflects the net change in these liability accounts over that specific period. It is important to note that this is not the total accrued liabilities, but rather the change in these liabilities during the specified time frame.
For a prospective Checkers franchisee, understanding the changes in these liabilities can provide insight into the company's financial management and obligations. Accrued liabilities represent expenses that Checkers has incurred but not yet paid, such as wages, benefits, and deferred revenue. Monitoring these changes can help franchisees assess the company's short-term financial health and its ability to meet its obligations.
The increase of $9,416 suggests that Checkers' accrued liabilities grew during this period. This could be due to various factors, such as increased sales leading to higher deferred revenue, or increased operating expenses resulting in higher accrued wages and benefits. Franchisees should consider these factors when evaluating the financial stability of Checkers.
It is important for potential franchisees to review the full financial statements and consult with a financial advisor to gain a comprehensive understanding of Checkers' financial position and the implications for their investment. While the FDD provides valuable information, professional financial analysis is essential for making informed decisions.