What was the reported operating lease liabilities for Checkersrallys for the period ended January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Periods Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Janua | 2023 through ry 1, 2024 ccessor) | 202: June | January 3, 2023 through June 16, 2023 (Predecessor) | ary 2, 2023 edecessor) | ary 3, 2022 | |||
| Revenues: | ||||||||
| Restaurant sales | $ | 141,217 | $ | 130,191 | $ | 278,541 | $ | 291,447 |
| Franchise and retail royalty revenue | 18,608 | 15,385 | 30,149 | 29,613 | ||||
| Franchise fees and other income | 5,317 | 4,061 | 9,685 | 10,964 | ||||
| Total Revenues | 165,142 | 149,637 | 318,375 | 332,024 | ||||
| Costs and expenses: | ||||||||
| Restaurant food and paper costs | 45,102 | 41,194 | 91,396 | 86,774 | ||||
| Restaurant labor costs | 44,446 | 38,348 | 86,874 | 88,361 | ||||
| Restaurant occupancy costs | 11,778 | 11,145 | 23,097 | 28,432 | ||||
| Restaurant depreciation | 2,524 | 7,529 | 13,084 | 13,838 | ||||
| Other restaurant operating expenses | 20,357 | 17,423 | 39,597 | 38,570 | ||||
| General and administrative expenses | 19,435 | 36,471 | 35,999 | 39,668 | ||||
| Franchise support and service expenses | 3,634 | 1,696 | 6,447 | 5,088 | ||||
| Advertising expense | 8,077 | 6,810 | 14,825 | 15,464 | ||||
| Other depreciation and amortization | 2,093 | 900 | 1,542 | 1,583 | ||||
| Restaurant retirement costs | 300 | 596 | 305 | 531 | ||||
| Impairment of long-lived assets | 623 | 66,633 | 4,763 | - | ||||
| Net loss on disposal of fixed assets | 670 | 839 | 606 | 1,301 | ||||
| Net loss on sales of restaurants | 38 | 238 | ||||||
| Total costs and expenses | 159,039 | 2. | 229,584 | 318,773 | 3 | 319,610 | ||
| Operating income (loss) | 6,103 | (79,947) | (398) | 12,414 | ||||
| Other income (expense) | ||||||||
| Interest income | 1 | - | 1 | (E) | ||||
| Interest expense | (8,134) | (18,326) | (26,203) | (22,887) | ||||
| Other income (expense) | :=: | (375) | 24 | 201 | ||||
| Total other income (expense) | 0 | (8,133) | (18,701) | (26,178) | - | (22,686) | ||
| Loss before income tax expense (benefit) | (2,030) | (98,648) | (26,576) | (10,272) | ||||
| Income tax expense (benefit) | 540 | (7,542) | (2,952) | (206) | ||||
| Net loss | $ | (2,570) | $ | (91,106) | $ | (23,624) | $ | (10,066) |
CHECKERS DRIVE-IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
June 17, 2023 through January 1, 2024 (Successor) Sugar 2, 2023 CPredecessor) CPredecessor) For the Periods Ended Net loss $ (2,570) $ (91,106) $ (23,624) $ Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization A 6,638 A mortization of deferred financing costs A mortization of deferred financing costs Deferred income tax expense (benefit) Noncash operating lease expense, net Eight-of-use asset amortization for finance lease Change in favorable leasehold interests Change in unfavorable leasehold interests Noncash stock based compensation Noncash interest on long-term debt Loss on disposal of fixed assets Net loss on disposal of fixed assets Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory Decrease (increase) in prepaid expenses (1,648) Decrease (increase) in other noncurrent assets 231 Changes in other noncurrent assets 232 Decrease (increase) in other noncurrent assets 233 Changes in other noncurrent assets (1,241) Decrease (increase) in other noncurrent assets 231 Control of the distribution of the current assets (1,241) Decrease (increase) in other noncurrent assets Depreciation and amortization 10,066) Amortization of deferred financing costs 54 892 1,771 Provision for credit losses 122 94 134 Deferred income tax expense (benefit) 4 (7,529) (2,961) Noncash operating lease expense, net 5,490 6,878 14,914 Right-of-use asset amortization for finance lease 455 262 204 Change in favorable leasehold interests 232 146 - Change in unfavorable leasehold interests (31) Noncash stock based compensation 132 5,720 1,208 Noncash interest on long-term debt 2,534 13,808 9,882 Impairment of long-lived assets 670 839 606 Net loss on disposal of fixed as
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Checkersrallys's Consolidated Statements of Cash Flows includes a line item for the 'Change in operating lease liabilities.' For the period from June 17, 2023, through January 1, 2024, this figure is reported as a decrease of $8,154,000. This indicates the net change in Checkersrallys's operating lease liabilities during that time frame.
This number reflects the difference between new operating lease obligations incurred and the reduction of existing lease liabilities through payments, terminations, or other adjustments. A negative value, as in this case, suggests that Checkersrallys reduced its operating lease liabilities more than it added to them during this period.
For a prospective franchisee, this information provides insight into how Checkersrallys manages its lease obligations. While it doesn't detail the specific lease terms for individual franchise locations, it offers a view of the overall financial strategy related to leases. Franchisees may want to inquire about how these broader lease management practices could affect their specific location and lease agreements.