What were the capital expenditures for Checkersrallys during the period from June 17, 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) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, capital expenditures for the period from June 17, 2023 through January 1, 2024, totaled $7,269. This figure represents the investments Checkersrallys made in its physical assets and infrastructure during that time.
For a prospective franchisee, understanding Checkersrallys's capital expenditure trends can offer insights into the company's growth strategy and financial health. Significant capital expenditures might indicate investments in new technologies, expansion of facilities, or upgrades to existing infrastructure. Conversely, lower capital expenditures could suggest a focus on cost management or a different phase in the company's lifecycle.
It's important to note that this figure reflects Checkersrallys's overall capital expenditures and not necessarily the specific investments a new franchisee would need to make. Franchisees should carefully review the estimated initial investment costs outlined in Item 7 of the FDD to understand their own capital requirements. Additionally, they should inquire about any planned or required capital improvements for their specific location to ensure they are prepared for future expenses.