Does the text specify if the financial statements of Checkersrallys include an income statement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
and franchised restaurants. During the fiscal year ended December 30, 2024 (Successor) and the periods ended January 1, 2024 (Successor) and June 16, 2023 (Predecessor), only one member, representing 25% of the Board of Directors of the Fund, is an employee of the Company. The Fund is not included in the accompanying consolidated financial statements, although the Company's contributions to the Fund are included in advertising expense in the accompanying consolidated statements of operations.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the financial statements include consolidated statements of operations. This is evident from the discussion of the Checkers/Rally's National Production Fund (NPF) and Checkers and Rally's Distribution and Services, Inc. (CDSI), where the document states that Checkersrallys's contributions to these funds are included in advertising expense and restaurant food and paper costs, respectively, within the consolidated statements of operations.
Specifically, the FDD mentions that contributions to the NPF are included in advertising expense in the "accompanying consolidated statements of operations." Similarly, contributions to CDSI are included within "restaurant food and paper costs" in the "accompanying consolidated statements of operations." These references indicate that the financial statements prepared by Checkersrallys include a statement of operations, which is another name for an income statement.
For a prospective franchisee, this means that Checkersrallys provides a detailed breakdown of its revenues and expenses in its financial statements, allowing for a clear understanding of the company's profitability and financial performance. The inclusion of these details in the statement of operations offers transparency regarding how Checkersrallys manages its financial resources and allocates funds to various operational aspects, such as advertising and food costs.