Who is the independent auditor for Checkersrallys' consolidated financial statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
lidated statements of cash flows | 8 | | | Notes to consolidated financial statements | 9 |
101 E. Kennedy Blvd., Suite 3850 Tampa, FL 33602
D +1 813 229 7201 F +1 813 223 3015
GRANT THORNTON LLP REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors Checkers Drive-In Restaurants, Inc. and Subsidiaries
Opinion
We have audited the consolidated financial statements of Checkers Drive-In Restaurants, Inc. and Subsidiaries (the "Company"), which comprise the consolidated balance sheet as of December 30, 2024 (Successor) and the related consolidated statement of operations, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 30, 2024 (Successor), and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for opinion
We conducted our audit of the consolidated financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Other Matter
The consolidated financial statements of the Company as of January 1, 2024 (Successor), for the period from June 17, 2023 through January 1, 2024 (Successor) and the period from January 3, 2023 through June 16, 2023 (Predecessor) were audited by other auditors, who expressed an unmodified opinion on those consolidated financial statements in their report dated August 13, 2024.
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the consolidated financial statements are issued.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company's consolidated financial statements as of December 30, 2024, were audited by Grant Thornton LLP. Their report, included in the FDD, expresses an opinion on the fairness of Checkersrallys' financial position, results of operations, and cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America.
For the financial statements as of January 1, 2024, and for the periods from June 17, 2023, through January 1, 2024, and from January 3, 2023, through June 16, 2023, the independent auditor was Ernst & Young LLP. Their report, also included in the FDD, expresses an opinion on the company's financial position and results of operations for those periods.
Prospective franchisees should review both audit reports and the accompanying financial statements carefully to understand Checkersrallys' financial performance and condition. Having two different auditors within a relatively short period is not necessarily a cause for concern, but it warrants further inquiry to understand the reasons for the change and whether it reflects any underlying issues within the company. It is a common practice for franchise companies to have their financial statements audited by independent certified public accountants to ensure transparency and compliance with accounting standards.