As of January 2, 2023, what was the approximate amount of federal alternative minimum tax credit carryforwards that Checkersrallys had?

According to Checkersrallys's 2025 Franchise Disclosure Document, as of January 2, 2023, the company had approximately $3,943 in federal alternative minimum tax and tax credit carryforwards. This deferred tax asset represents credits that Checkersrallys can use to reduce future tax liabilities.

For a prospective franchisee, understanding these deferred tax assets is crucial because they reflect the financial health and tax planning strategies of the company. While these assets don't directly impact the franchisee's immediate finances, they can influence the overall stability and profitability of Checkersrallys, which indirectly affects the franchise system.

It's important to note that deferred tax assets are subject to valuation allowances, which are reductions based on the likelihood that the company will actually be able to use the credits in the future. In this case, the valuation allowance is listed separately, indicating that Checkersrallys's management has made an assessment of the usability of these tax credits. Franchisees should consider the implications of these deferred tax assets and any associated valuation allowances as part of their due diligence.