What was the amount of additional paid-in capital for Checkersrallys related to stock-based compensation as of January 2, 2023?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
at end of period $ 12,557 $ 17,613 $ 18,049 $ 30,813 See accompanying notes, including the supplemental disclosure of cash flow information in Note 2.
CHECKERS DRIVE—IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (DEFICIT)
(Tabular Dollars in Thousands, Except Share and per Share Data)
| Predecessor | ||||||||
|---|---|---|---|---|---|---|---|---|
| Common Stock | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Total Stockholder's Equity (Deficit) | |||||
| Balances at December 28, 2020 | $ | $ | 262,976 | $ | (326,643) | $ | (63,667) | |
| Stock-based compensation | 2 | 758 | 15 (1 | 758 | ||||
| Contributions from Parent | * | 52,917 | 52,917 | |||||
| Co-op retained earnings adjustment | 15 | 44 | 44 | |||||
| Net loss | 7 4 2 | (10,066) | (10,066) | |||||
| Balances at January 3, 2022 | • | 316,651 | (336,665) | (20,014) | ||||
| Stock-based compensation | 2 | 1,208 | (6) | 1,208 | ||||
| ASC 842 transition | * | 50 + 3 | (38,618) | (38,618) | ||||
| Co-op retained earnings adjustment | 7: | (44) | (44) | |||||
| Net loss | (23,624) | (23,624) | ||||||
| Balances at Januar |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the additional paid-in capital related to stock-based compensation as of January 2, 2023, was $5,720. This figure reflects the value of stock-based compensation recognized by the company up to that date.
For a prospective franchisee, understanding this number in the context of the broader financial statements is important. Additional paid-in capital represents the amount by which the money raised from issuing stock exceeds the stock's par value. Stock-based compensation is a non-cash expense that can impact the company's profitability and cash flow.
While this specific figure may not directly impact the franchisee's day-to-day operations, it provides insight into Checkersrallys's overall financial health and compensation strategies. Franchisees should consider these factors as part of their due diligence, assessing the stability and management practices of the franchisor. Reviewing trends in stock-based compensation over time can also offer clues about potential future equity dilution or changes in executive compensation packages.
It is important to note that this figure is just one component of Checkersrallys's financial picture. Prospective franchisees should carefully review the entire financial statement and consult with a financial advisor to fully understand the implications for their investment.