What was the total stockholder's equity (deficit) for Checkers as of January 3, 2022?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ | 17,613 | $ | 18,049 | $ | 30,813 | | Capit and capit of art atoms at one or porton | - | | - | , | | | * | |
CHECKERS DRIVE—IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (DEFICIT)
(Tabular Dollars in Thousands, Except Share and per Share Data)
| Comm | on Stock | ional Paid-in Capital | cumulated ings (Deficit) | Total ckholder's ity (Deficit) | ||
|---|---|---|---|---|---|---|
| Balances at December 28, 2020 | $ | $ 262,976 | $ | (326,643) | $ (63,667) | |
| Stock-based compensation | 758 | - | 758 | |||
| Contributions from Parent | * | 52,917 | - | 52,917 | ||
| Co-op retained earnings adjustment | 44 | 44 | ||||
| Net loss | - |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the total stockholder's equity (deficit) as of January 3, 2022, was ($20,014). This figure is derived from the consolidated statements of operations, stockholder's equity (deficit), and cash flows included in the financial statements. It represents the cumulative financial position of Checkers at that specific point in time.
The stockholder's equity (deficit) is calculated by considering several factors, including common stock, additional paid-in capital, and accumulated earnings (deficit). For January 3, 2022, the additional paid-in capital was $316,651, while the accumulated earnings (deficit) was ($336,665). These values, when combined, result in the total stockholder's equity (deficit) of ($20,014).
A negative stockholder's equity, or deficit, indicates that the company's liabilities exceed its assets. For a prospective franchisee, this information is crucial as it provides insight into the financial health and stability of Checkers. While a deficit does not automatically disqualify a franchise opportunity, it warrants further investigation into the company's strategies for improving its financial position and ensuring long-term viability. It is important to consider this figure in conjunction with other financial metrics and trends to gain a comprehensive understanding of the franchise's financial performance.