What is the starting month for the financial period ending January 2, 2023, for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Due to the presentation of the Successor and Predecessor periods, the period ended January 1, 2024 refers to the period from June 17, 2023 to January 1, 2024 (Successor). The period ended June 16, 2023 refers to the period from January 3, 2023 to June 16, 2023 (Predecessor). The period ended January 2, 2023 (Predecessor) refers to the 52-week period ended January 2, 2023. The period ended January 3, 2022 (Predecessor) refers to the 53-week period ended January 3, 2022.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the financial period ending January 2, 2023, began on January 3, 2022. This period is identified as a "Predecessor" period, which is relevant due to the Recapitalization Agreement that led to the presentation of both Successor and Predecessor periods in the financial statements.
For a prospective Checkersrallys franchisee, understanding these financial periods is crucial for analyzing the company's performance. The distinction between Successor and Predecessor periods indicates a significant event (the Recapitalization Agreement) that may have altered the financial structure or performance of the company. Therefore, comparing financial results across these periods requires careful consideration of the underlying changes.
The FDD includes audited consolidated balance sheets, statements of operations, statements of stockholder's equity, and cash flow statements for these periods, along with explanatory notes. Franchisees should review these statements and notes thoroughly to understand the impact of the Recapitalization Agreement and to assess the financial health and stability of Checkersrallys.
Specifically, the financial statement covers the fiscal years ended January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor).