How did Checkers' total current assets change between January 2, 2023 and January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ain internal control-related matters that we identified during the audit.
Tampa, Florida April 1, 2025
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| December 30, January 1, 2024 2024 ASSETS Current assets Cash and cash equivalents $ 15,562 $ 12,557 Accounts and notes receivable, net 7,717 7,399 Inventory 2,428 2,178 Prepaid expenses 5,338 5,308 Other current assets 799 2,867 Total current assets 31,844 30,309 Property and equipment, net 31,679 29,309 Operating lease right-of-use assets 132,807 145,3
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the company's total current assets increased from January 1, 2024 to December 30, 2024. Specifically, total current assets increased from $30,309 to $31,844. This represents an increase of $1,535 in total current assets for Checkers.
For a prospective franchisee, this information provides a glimpse into the financial health and liquidity of Checkers. Current assets are those that can be readily converted into cash within a year, and an increase may indicate improved short-term financial stability. This could mean Checkers is better positioned to meet its immediate obligations and invest in growth opportunities.
However, it's important to consider this change in the context of Checkers's overall financial performance and industry trends. A franchisee should investigate the reasons behind this increase, such as improved sales, better inventory management, or changes in accounting practices. Additionally, comparing Checkers's current asset position to its competitors can provide a more comprehensive understanding of its financial standing.
While an increase in current assets is generally positive, franchisees should also assess the composition of these assets. For example, a large increase in accounts receivable might indicate potential issues with collecting payments from customers. Therefore, a thorough review of Checkers's financial statements and discussions with the franchisor are crucial for making informed investment decisions.