Does the text specify the currency used in the Checkersrallys financial statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
---------------------------------|----------------| | | | Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | | Period from January 3, 2023 through June 16, 2023 | | | Operating activities: | | | | | | | | Net income (loss) | $ | 21,260 | $ | (2,570) | | (91,106) | | Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | | | | | | | | Depreciation and amortization | | 9,312 | | 4,638 | | 8,552 | | Amortization of deferred financing costs | | 294 | | 54 | | 892 | | Provision for credit losses | | 582 | | 122 | | 94 | | Deferred income tax expense (benefit) | | (25,962) | | 4 | | (7,529) | | Noncash operating lease expense, net | | 14,873 | | 5,490 | | 6,878 | | Right-of-use asset amortization for finance lease | | 2,699 | | 455 | | 262 | | Change in favorable leasehold interests | | 427 | | 232 | | 146 | | Change in unfavorable leasehold interests | | 56 | | (31) | | (29) | | Noncash stock based compensation | | 498 | | 132 | | 5,720 | | Noncash interest on long-term debt | | 5,201 | | 2,534 | | 13,808 | | Impairment of long-lived assets | | 2,384 | | 623 | | 66,633 | | Net loss on disposal of fixed assets | | 64 | | 670 | | 839 | | Changes in operating assets and liabilities: | | | | | | | | Decrease (increase) in accounts receivable, net | | (264) | | (1,693) | | 221 | | Decrease (increase) in inventory | | (250) | | 927 | | (564) | | Decrease (increase) in prepaid expenses | | (30) | | (1,618) | | 1,137 | | Decrease (increase) in other current assets | | 1,881 | | (1,241) | | 105 | | Decrease in other noncurrent assets | | 1,150 | | 231 | | 602 | | (Decrease) increase in accounts payable | | 582 | | (16) | | (247) | | (Decrease) increase in accrued liabilities, accrued wages and benefits, deferred | | | | | | | | revenue, self-insurance, and long-term liabilities | | (680) | | (7,774) | | 9,416 | | Change in operating lease liabilities | | (17,434) | | (8,154) | | (8,250) | | Other changes, net | | (793) | | (237) | | (584) | | Net cash provided by (used in) operating activities | | 15,850 | | (7,222) | | 6,996 | | Investing activities: | | | | | | | | Capital expenditures | | (10,024) | | (7,269) | | (5,513) | | | | | | | | | | Net cash used in investing activities | | (10,024) | | (7,269) | | (5,513) | | Financing activities: | | | | | | | | Payment for debt issuance costs | | - | | (500) | | - | | Principal payments on long-term debt | | (812) | | (1,304) | | (1,360) | | Principal payments on financing obligations | | (73) | | (47) | | (400) | | Repayments on finance lease liabilities | | (1,885) | | (254) | | (159) | | Proceeds from short-term financing | | 1,464 | | 1,540 | | - | | Payment on short-term financing | | (1,515) | | - | | - | | Proceeds from the issuance of long-term financing | | - | | 10,000 | | - | | | | | | | | | | Net cash (used in) provided by financing activities | | (2,821) | | 9,435 | | (1,919) | | NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS | | 3,005 | | (5,056) | | (436) | | Cash, cash equivalents, and restricted cash at beginning of period | | 12,557 | | 17,613 | | 18,049 | | Cash, cash equivalents, and restricted cash at end of period | $ | 15,562 | $ | 12,557 | $ | 17,613 | | Supplemental disclosure of cash flow information: | | | | | | | | Cash paid for interest | $ | 7,859 | $ | 4,619 | $ | 458 | | Income taxes paid, net of refunds | | 558 | | 18 | | 43 | | | | | | | | | | Non-cash activities: | | | | | | | | Non-cash right-of-use assets obtained in exchange for operating leases | $ | 664 | $ | 1,006 | $ | 1,058 | | Non-cash right-of-use assets obtained in exchange for finance
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the financial statements list various assets, liabilities, and cash flows with numerical values. The amounts are preceded by a dollar sign ($). This indicates that the currency used in Checkersrallys's financial statements is likely United States Dollars (USD). A prospective franchisee can be reasonably confident that all the financial figures presented are in USD.
It is standard accounting practice to clearly indicate the currency used in financial statements to avoid ambiguity. The presence of the dollar sign ($) before the numerical values for items such as net income, depreciation, cash, and assets strongly suggests that the financial data is presented in USD. This is crucial for franchisees when assessing the financial health and performance of Checkersrallys.
While the dollar sign is a strong indicator, a prudent franchisee may still want to confirm this with Checkersrallys during their due diligence. Confirming the currency helps in accurately interpreting the financial data and making informed investment decisions. This confirmation can be part of a broader discussion about the financial assumptions and projections provided by Checkersrallys.