Does the text allow for comparison of financial data between 2024 and 2023 for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
| 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 | . | 10 | 9 | 8 | ||
| Other | 16 | 1,778 | (7) | 104 | ||
| Deferred taxasset write-off | 2,366 | 3 5 8 | ||||
| State accrual changes | ( + 0) | 544 | (1,458) | (695) | ||
| State tax rate change | • | (17) | (1,867) | 120 | ||
| Change in deferred tax asset valuation allowance | 641 | 10,231 | 6,756 | 4,707 | ||
| Total income tax expense (benefit) | $ 540 | $ (7,542) | $ (2,952) | $ (206) |
[Item 21: FINANCIAL STATEMENTS]
(Tabular Dollars in Thousands, Except Share and per Share Data)
6. Accounts and Notes Receivable
The following table summarizes the Company's receivables and allowances as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor):
[Item 21: FINANCIAL STATEMENTS]
| For the Periods Ended | |||||
|---|---|---|---|---|---|
| nuary 1, 2024 (ccessor) | January 2, 2023 (Predecessor | ||||
| Deferred tax assets: | |||||
| Net operating loss carryforwards | $ | ~ | $ | 13,890 | |
| Business interest limitation carryforward | 21,518 | 15,579 | |||
| Accruals | 2,211 | 1,757 | |||
| Operating right-of-use assets | 39,355 | 53,837 | |||
| Difference between book and tax basis of property and equipment | 9,423 | 34 | |||
| Allowance for credit losses | 69 | 94 | |||
| Stock-based compensation | 32 | 967 | |||
| Alternative minimum tax and tax credit carry forwards | 121 | 3,943 | |||
| Deferred revenue and other | 2,507 | 4,479 | |||
| Deferred tax assets | 75,115 | 94,546 | |||
| Less valuation allowance | (38,288) | - | (42,399) | ||
| Net deferred tax assets | 36,827 | - | 52,147 | ||
| Deferred tax liabilities: | |||||
| Difference between book and tax basis of brands intangible assets | (48,300) | (55,294) | |||
| Difference between book and tax basis of other intangible assets | (1,365) | (6,512) | |||
| Difference between book and tax basis of property and equipment | :*) | (256) | |||
| Operating lease liabilities | (35,246) | (45,346) | |||
| Other | (246) | (33) | |||
| Deferred tax liabilities | (85,157) | (107,441) | |||
| Deferred income tax liabilities, net | $ | (48,330) | $ | (55,294) |
[Item 21: FINANCIAL STATEMENTS]
| Report of Independent Auditors | 1 |
|---|---|
| Consolidated Balance Sheets as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor) | 3 |
| Consolidated Statements of Operations for the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor), and the fiscal years ended January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor) | 4 |
| Consolidated Statements of Cash Flows for the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor), and the fiscal years ended January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor) | 5 |
| Consolidated Statements of Stockholder's Equity (Deficit) for the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor) and the fiscal years ended January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor) | 6 |
| Notes to Consolidated Financial Statements | 7 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, specifically Item 21 which covers the financial statements, it is possible to compare some financial data between 2024 and 2023. The provided excerpts include consolidated balance sheets as of January 1, 2024, and January 2, 2023. There are also consolidated statements of operations which include data from June 17, 2023, through January 1, 2024, and January 3, 2023, through June 16, 2023, as well as the fiscal year ended January 2, 2023. Additionally, there are statements of cash flow and stockholder equity covering similar periods.
Specifically, one table summarizes the company's receivables and allowances as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor). Another table provides a breakdown of deferred tax assets and liabilities for the periods ending January 1, 2024, and January 2, 2023, allowing for a direct comparison of these specific financial items between the two years. A further table provides a breakdown of income tax expenses and benefits for various periods in 2023 and 2022.
However, it is important to note that some of the 2023 data is split into two periods (January 3, 2023 through June 16, 2023, and June 17, 2023 through January 1, 2024) due to a change in the company's structure (Successor vs. Predecessor). This may require some additional calculation to get a full-year view for 2023 to compare against the full year 2024 data. Prospective franchisees should carefully review these statements and consider consulting with a financial advisor to fully understand Checkersrallys's financial performance and position.