What is the ending date for the financial period ending in 2024 for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
As a result of the Recapitalization Agreement, the Company is presenting a successor period for the fiscal year ended December 30, 2024 and the period of June 17, 2023, through January 1, 2024 ("Successor Periods") and predecessor periods of January 3, 2023 through June 16, 2023 and fiscal years ended January 2, 2023 and January 3, 2022 (each individually referred to as a "Predecessor Period" and collectively as the "Predecessor Periods"), within the audited financial statements. See footnote 1 within the audited financial statements for further information relating to the transaction.
Attached to this Franchise Disclosure Document as Exhibit H are our audited consolidated balance sheets as of December 30, 2024 (Successor), January 1, 2024 (Successor) and January 2, 2023 (Predecessor), and the related consolidated statements of operations, stockholder's equity (deficit) and cash flows for the fiscal year ending December 30, 2024 (Successor), the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor), and the fiscal years ending January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor), and the related notes.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company is presenting a successor period for the fiscal year ended December 30, 2024. This successor period covers June 17, 2023, through January 1, 2024. There are also predecessor periods from January 3, 2023, through June 16, 2023, and fiscal years ended January 2, 2023, and January 3, 2022, within the audited financial statements.
For a prospective Checkersrallys franchisee, this means that the financial statements included in the FDD provide a detailed look at the company's performance over several periods, including a "Successor" period ending December 30, 2024. The distinction between successor and predecessor periods is due to a Recapitalization Agreement, which may have involved significant changes in the company's financial structure or ownership. Understanding the reasons behind these different periods is crucial for assessing the financial health and stability of Checkersrallys.
The FDD includes audited consolidated balance sheets as of December 30, 2024, January 1, 2024, and January 2, 2023, along with related statements of operations, stockholder's equity (deficit), and cash flows for various periods. These financial statements are crucial for potential franchisees to evaluate the financial performance and stability of Checkersrallys. Reviewing these statements and understanding the implications of the successor and predecessor periods is an important part of the due diligence process before investing in a franchise.
Prospective franchisees should pay close attention to the notes within the audited financial statements, as they provide further information relating to the Recapitalization Agreement and other significant transactions. Consulting with a financial advisor or accountant to interpret these statements and understand their potential impact on the franchisee's investment is highly recommended.