Due to the Out-of-Court restructuring, is there any tax-deductible goodwill for Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, due to the Out-of-Court Restructuring, there is no tax-deductible goodwill. The company underwent an Out-of-Court Restructuring, which impacted its tax attributes. As a result of this restructuring, Checkersrallys reduced its basis in tax attributes, including Net Operating Losses (NOLs) and credits, to zero.

This means that Checkersrallys cannot deduct any goodwill for tax purposes following the Out-of-Court Restructuring. Goodwill typically arises in business combinations when the purchase price exceeds the fair value of net assets acquired. The fact that there is no tax-deductible goodwill suggests that the restructuring may have involved a reassessment and reduction of the company's asset values for tax purposes.

For a prospective franchisee, this information is relevant because it provides insight into the financial restructuring Checkersrallys underwent. While the absence of tax-deductible goodwill may not directly impact franchisees' day-to-day operations, it reflects the financial strategies and tax considerations at the corporate level. Understanding these aspects can help franchisees assess the overall financial health and stability of the franchisor.