What was the amount of board compensation and travel-related costs paid by Checkersrallys prior to the Out-of-Court Restructuring?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
iods ended January 1, 2024 (Successor), June 16, 2023
(Tabular Dollars in Thousands, Except Share and per Share Data)
(Predecessor), January 2, 2023 (Predecessor), and January 3, 2022 (Predecessor), respectively, related to this print advertising in "advertising expense" in the accompanying consolidated statements of operations.
Prior to the Out-of-Court Restructuring, OHCP, through its affiliates, owned a majority of the equity interests in BossCo Holdings, our parent, during such time, four directors of BossCo Holdings were employees of OHCP and we paid certain travel-related costs for those directors when conducting business with or on behalf of the Company as well as board fees to several members of our Board of Directors. The amount of board compensation and travel related costs was $0.2 million for the fiscal period ended January 1, 2024 (Successor) and $0.4 million for the
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, prior to the Out-of-Court Restructuring, OHCP, through its affiliates, held a majority stake in BossCo Holdings, Checkersrallys's parent company. During this period, four directors of BossCo Holdings were employees of OHCP. Checkersrallys covered certain travel-related costs for these directors when they conducted business on behalf of the company. Additionally, Checkersrallys paid board fees to several members of its Board of Directors.
The amount of board compensation and travel-related costs totaled $0.2 million for the fiscal period ended January 1, 2024 (Successor) and $0.4 million for the fiscal period ended June 16, 2023 (Predecessor). For each of the years ended January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor), the amount was $0.5 million. These expenses were recorded within "general and administrative expenses" on the consolidated statement of operations.
For a prospective franchisee, this information provides insight into the historical costs associated with board compensation and travel before the restructuring. While the "Successor" period reflects costs after the restructuring, the "Predecessor" periods offer a view of expenses under the previous ownership structure. Understanding these past expenses can help a franchisee assess the potential for similar costs in the future, although the FDD notes that the Successor and Predecessor financial statements are not necessarily comparable due to changes in the accounting basis of assets and liabilities.