As of January 2, 2023, what were the accounts receivable balances for the NPF and CDSI related to Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
only one member, representing 25% of the CDSI Board of Directors is an employee of the Company. CDSI is not included in the accompanying consolidated financial statements, although the company's contributions to CDSI are included within "restaurant food and paper costs" in the accompanying consolidated statements of operations.
The Company pays invoices on behalf of NPF and CDSI and then bills each for the balance of these invoices each period. This resulted in $2.6 million and $0.7 million of accounts receivable for the NPF and CDSI, resp
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, as of January 2, 2023, the accounts receivable recorded for the National Production Fund (NPF) was $1.2 million, and for Checkers and Rally's Distribution and Services, Inc. (CDSI) it was $1.0 million. These figures represent the amounts Checkersrallys billed to NPF and CDSI for invoices the company paid on their behalf.
These accounts receivable balances are included in the "accounts and notes receivable, net" on Checkersrallys's consolidated balance sheet. This means that the amounts owed by NPF and CDSI are considered assets of Checkersrallys, reflecting money that is expected to be received in the future.
For a prospective franchisee, understanding these related-party transactions is important. It highlights the financial relationships Checkersrallys has with its affiliated entities and how these relationships are accounted for in the company's financial statements. While the franchisee is not directly involved in these transactions, they provide insight into the overall financial structure and operational practices of Checkersrallys.