What happened to the equity of Burger BossCo owned by BossCo Holdings during the Checkersrallys Out-of-Court Restructuring?

According to Checkersrallys's 2025 Franchise Disclosure Document, during the Out-of-Court Restructuring that concluded on June 16, 2023, the equity of Burger BossCo owned by BossCo Holdings was repurchased by Burger BossCo for a nominal amount. This event was part of a larger restructuring process where Burger BossCo and its subsidiaries were deconsolidated from BossCo Holdings. Newly issued equity of Burger BossCo was issued to Checkers Topco, LLC, and the secured creditors of Holdings and Burger BossCo acquired all of the equity of Topco.

This restructuring was initiated on June 5, 2023, when Burger BossCo, Holdings, CDI, and certain affiliates began soliciting consents for the Out-of-Court Restructuring from holders of loans under the First Lien Credit Agreement and the Second Lien Credit Agreement. Checkersrallys obtained consent from all First Lien Lenders and Second Lien Lenders to proceed with the restructuring.

For a potential Checkersrallys franchisee, this information highlights a significant change in the ownership and capital structure of the company. The move to repurchase equity for a nominal amount suggests that BossCo Holdings no longer has a controlling interest in Burger BossCo, which could impact the strategic direction and financial stability of the franchise system. It's important for prospective franchisees to understand the implications of these changes and how they might affect the long-term prospects of their investment. They should seek clarification from Checkersrallys regarding the reasons for the restructuring and its potential impact on franchise operations and support.