Does the text mention any material events that could affect the interpretation of Checkersrallys' financial statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
) and customers, as well as disputes over intellectual property. We do not expect the outcome of pending litigation to have a material impact on our business or consolidated financial position, although it may have a material impact on our consolidated results of operations in any particular annual period.
18. Subsequent Events
The Company has evaluated subsequent events through August 13, 2024, the date the financial statements were available to be issued and determined that there were no events that have occurred since the consolidated balance sheet date that require disclosure to prevent the consolidated financial statements from being materially misleading.
ITEM 22 CONTRACTS
Attached as Exhibits to this Franchise Disclosure Document are the following contracts and their attachments:
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- Franchise Agreement (Exhibit B)
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- Existing Franchisee Incentive Addendum (Exhibit B-1)
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- 2025 Growth Incentive Addendum (Exhibit B-2)
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- Non-Traditional Site Addendum (Exhibit B-3)
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- Vet Fran Incentive Addendum (Exhibit B-4)
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- Women Business Owner Incentive Addendum (Exhibit B-5)
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- Development Agreement (Exhibit C)
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- Electronic Payment Authorization (Exhibit E)
- Agreement Riders for Registration States (Exhibit J)
The form of general release that we currently intend to use with transfers and renewals is at Exhibit K.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company evaluated subsequent events through August 13, 2024, and determined that there were no events that have occurred since the consolidated balance sheet date that require disclosure to prevent the consolidated financial statements from being materially misleading. This evaluation provides assurance that the financial statements accurately reflect the company's financial position up to that date, without any undisclosed material events affecting their interpretation.
Additionally, the document mentions that Checkersrallys is involved in legal proceedings that arise in the ordinary course of business. These proceedings include disputes with franchisees, suppliers, employees, and customers, as well as disputes over intellectual property. However, Checkersrallys does not expect the outcome of pending litigation to have a material impact on their business or consolidated financial position. It is important to note that while the company does not anticipate a material impact on its overall financial position, these legal proceedings may have a material impact on the consolidated results of operations in any particular annual period.
Furthermore, the document states that as a result of the Recapitalization Agreement, the company is presenting a successor period for the fiscal year ended December 30, 2024, and the period of June 17, 2023, through January 1, 2024, and predecessor periods of January 3, 2023, through June 16, 2023, and fiscal years ended January 2, 2023, and January 3, 2022, within the audited financial statements. This means that the financial statements include both "Successor Periods" and "Predecessor Periods," which is a result of the Recapitalization Agreement. Footnote 1 within the audited financial statements provides further information relating to this transaction.