What was the amount of financed insurance premiums for Checkersrallys from December 30, 2023 through January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Successor | Predecessor | |||||
|---|---|---|---|---|---|---|
| Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | ||||
| Operating activities: | ||||||
| Net income (loss) | $ | 21,260 | $ | (2,570) | (91,106) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
| Depreciation and amortization | 9,312 | 4,638 | 8,552 | |||
| Amortization of deferred financing costs | 294 | 54 | 892 | |||
| Provision for credit losses | 582 | 122 | 94 | |||
| Deferred income tax expense (benefit) | (25,962) | 4 | (7,529) | |||
| Noncash operating lease expense, net | 14,873 | 5,490 | 6,878 | |||
| Right-of-use asset amortization for finance lease | 2,699 | 455 | 262 | |||
| Change in favorable leasehold interests | 427 | 232 | 146 | |||
| Change in unfavorable leasehold interests | 56 | (31) | (29) | |||
| Noncash stock based compensation | 498 | 132 | 5,720 | |||
| Noncash interest on long-term debt | 5,201 | 2,534 | 13,808 | |||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | |||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | |||
| Changes in operating assets and liabilities: | ||||||
| Decrease (increase) in accounts receivable, net | (264) | (1,693) | 221 | |||
| Decrease (increase) in inventory | (250) | 927 | (564) | |||
| Decrease (increase) in prepaid expenses | (30) | (1,618) | 1,137 | |||
| Decrease (increase) in other current assets | 1,881 | (1,241) | 105 | |||
| Decrease in other noncurrent assets | 1,150 | 231 | 602 | |||
| (Decrease) increase in accounts payable | 582 | (16) | (247) | |||
| (Decrease) increase in accrued liabilities, accrued wages and benefits, deferred | ||||||
| revenue, self-insurance, and long-term liabilities | (680) | (7,774) | 9,416 | |||
| Change in operating lease liabilities | (17,434) | (8,154) | (8,250) | |||
| Other changes, net | (793) | (237) | (584) | |||
| Net cash provided by (used in) operating activities | 15,850 | (7,222) | 6,996 | |||
| Investing activities: | ||||||
| Capital expenditures | (10,024) | (7,269) | (5,513) | |||
| Net cash used in investing activities | (10,024) | (7,269) | (5,513) | |||
| Financing activities: | ||||||
| Payment for debt issuance costs | - | (500) | - | |||
| Principal payments on long-term debt | (812) | (1,304) | (1,360) | |||
| Principal payments on financing obligations | (73) | (47) | (400) | |||
| Repayments on finance lease liabilities | (1,885) | (254) | (159) | |||
| Proceeds from short-term financing | 1,464 | 1,540 | - | |||
| Payment on short-term financing | (1,515) | - | - | |||
| Proceeds from the issuance of long-term financing | - | 10,000 | - | |||
| Net cash (used in) provided by financing activities | (2,821) | 9,435 | (1,919) | |||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS | 3,005 | (5,056) | (436) | |||
| Cash, cash equivalents, and restricted cash at beginning of period | 12,557 | 17,613 | 18,049 | |||
| Cash, cash equivalents, and restricted cash at end of period | $ | 15,562 | $ | 12,557 | $ | 17,613 |
| Supplemental disclosure of cash flow information: | ||||||
| Cash paid for interest | $ | 7,859 | $ | 4,619 | $ | 458 |
| Income taxes paid, net of refunds | 558 | 18 | 43 | |||
| Non-cash activities: | ||||||
| Non-cash right-of-use assets obtained in exchange for operating leases | $ | 664 | $ | 1,006 | $ | 1,058 |
| Non-cash right-of-use assets obtained in exchange for finance leases | 7,481 | 8,283 | 7,808 | |||
| Purchased c |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the amount of financed insurance premiums from December 30, 2023, through January 1, 2024, was $(1,540). This indicates a reduction in financed insurance premiums during this specific period.
For a prospective franchisee, this figure is relevant in understanding the fluctuations in Checkersrallys's financial activities. Financed insurance premiums reflect the cost of insuring the business, and a negative value suggests a decrease in these costs during the specified timeframe. This could be due to various factors, such as changes in insurance policies, risk assessments, or payment schedules.
It's important to note that this is a snapshot of a specific period and may not be indicative of long-term trends. A franchisee should investigate further to understand the reasons behind this decrease and how it might impact their own insurance costs and financial planning. Reviewing historical data and discussing insurance strategies with Checkersrallys can provide a more comprehensive understanding.