As of January 2, 2023, what was the approximate amount of federal employment credits available to be utilized by Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
tax expense (benefit) | $ | 540 | $ | (7,542) | $ | (2,952) | $ | (206) | | The following is a reconciliation of the income tax (benefit) expense computed by applying the federal statutory income tax rate to "loss before income tax benefit" to the "income tax benefit" shown in the accompanying consolidated statements of operations:
| For the | Periods | For the Years Ended | ||||
|---|---|---|---|---|---|---|
| June 17, 2023 through January 1, 2024 (Successor) | January 3, 2023 through June 16, 2023 (Predecessor) | January 2, 2023 (Predecessor) | January 3, 2022 (Predecessor) | |||
| Federal income tax benefit computed at statutory rate | $ (20,786) | $ (5,617) | $ (2,157) | |||
| State and local income tax benefit, net of federal income tax benefit | (20) | (3,871) | (907) | (804) | ||
| Permanent differences and other | 397 | 2,203 | 139 | (1,369) | ||
| Unrecognized tax benefits | . |
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 approximate amount of federal tax credits available is presented in the financial statements. The document lists a "Federal income tax benefit computed at statutory rate" of $5,617 and a "Federal" current tax amount of $10. There is also a "Federal" deferred tax amount of $685. These figures reflect the income tax benefits and deferred tax assets related to federal income taxes.
It is important to note that these figures represent income tax benefits and deferred tax assets, not specifically "federal employment credits." The FDD does not explicitly state the amount of federal employment credits available. The figures provided relate to the broader category of federal income tax benefits and deferred tax assets, which may include various components beyond just employment credits.
A prospective Checkersrallys franchisee should inquire with the franchisor about the specific amount of federal employment credits that were available to be utilized as of January 2, 2023. Understanding the nature and availability of these credits can be financially beneficial for the franchisee.