What was the total stock consideration in the Out-of-Court Restructuring agreement for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
alue as of the acquisition date. As an indirect subsidiary of the accounting acquirer, the Company has elected to apply pushdown accounting, whereby it will also recognize the assets acquired and liabilities assumed at fair value as of the acquisition date.
The total stock consideration was $9
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the total stock consideration in the Out-of-Court Restructuring agreement was $97.8 million. This consideration was comprised of 90 shares of Burger BossCo, which were acquired by Topco.
The document specifies that the fair value of the stock consideration was determined through a third-party valuation. This valuation used market and income approaches, with the results weighted appropriately to arrive at the final fair value. This valuation is a standard practice in business combinations to ensure an objective assessment of the assets being transferred.
For a prospective Checkers franchisee, this information provides insight into the financial restructuring of the parent company. While it does not directly impact the day-to-day operations of a franchise, understanding the financial health and restructuring activities of the parent company can be valuable for assessing the overall stability and long-term prospects of the franchise system.