What was the total amount of Checkers' current liabilities in the later year presented?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current liabilities | |||
|---|---|---|---|
| Accounts payable | $ 3,563 | $ 2,650 | |
| Accrued liabilities | 13,855 | 13,801 | |
| Accrued wages and benefits | 3,708 | 4,148 | |
| Current portion of deferred revenue | 2,652 | 2,717 | |
| Current maturities of long-term debt | 1,788 | 1,802 | |
| Current maturities of financing obligations | 67 | 77 | |
| Current portion of accrued self-insurance | 2,365 | 1,640 | |
| Current portion of operating lease liabilities | 11,490 | 11,742 | |
| Current portion of finance lease liabilities | 966 | 545 | |
| Total current liabilities | 40,454 | 39,122 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the total current liabilities for the later year presented amounted to $39,122. This figure represents the sum of various short-term financial obligations that Checkers was expected to settle within a year. These liabilities include accounts payable, accrued liabilities, accrued wages and benefits, the current portion of deferred revenue, current maturities of long-term debt, current maturities of financing obligations, the current portion of accrued self-insurance, the current portion of operating lease liabilities, and the current portion of finance lease liabilities.
Understanding the composition and magnitude of these current liabilities is crucial for prospective franchisees. It provides insight into Checkers' short-term financial health and its ability to meet its immediate obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect Checkers' ability to support its franchisees or invest in growth initiatives. Conversely, a manageable level of current liabilities suggests financial stability and efficient management of short-term obligations.
For a potential Checkers franchisee, this information is valuable for assessing the overall financial risk associated with investing in the franchise. It is advisable to compare these figures with those of other similar franchise systems to benchmark Checkers' financial position. Additionally, prospective franchisees should seek clarification from Checkers regarding the specific nature of these liabilities and how they are managed to ensure a comprehensive understanding of the company's financial practices.