Does the text specify if the financial statements of Checkersrallys include a schedule of compensation of officers?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company sponsors a qualified defined contribution plan covering all non-director employees. There was no match of employee contributions and there was less than $0.1 million in expense associated with this plan in each of the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor) and for the years ended January 2, 2023, and January 3, 2022.
Successor Period Equity-Based Compensation Plan
On August 25, 2023 (Successor), Topco created a new management incentive plan, "Management Incentive Plan," which authorized Topco to issue various equity awards to managers and executives of Topco and its consolidated subsidiaries. Equity awards authorized to be issued include Class B units ("Class B Units"), phantom units, options, warrants, and other securities convertible into Class B units of Topco. For the fiscal year ended December 30, 2024 (Successor), the only awards issued were for Class B Units. Class B Units are profit-sharing interests that participate in earnings upon reaching a contractual hurdle rate.
The pretax stock-based compensation cost recognized under the Amended and Restated 2017 Management Incentive Plan was $5.7 million, $1.2 million, and $0.8 million, for the period January 3, 2023 through June 16, 2023 (Predecessor) and for the years ended January 2, 2023 (Predecessor), and January 3, 2022 (Predecessor), respectively. Stock-based compensation is recorded in "general and administrative expenses" in the respective accompanying consolidated statements of operations.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not explicitly state whether the financial statements of Checkersrallys include a schedule of compensation of officers. However, the document does mention compensation-related items. For example, it discusses a qualified defined contribution plan covering non-director employees, noting there was no match of employee contributions and less than $0.1 million in expense associated with this plan across multiple periods. Additionally, the document details equity-based compensation plans, including the Management Incentive Plan and awards for Class B Units, outlining vesting schedules and conditions. It also mentions noncash compensation, with pretax stock-based compensation costs recognized under the Amended and Restated 2017 Management Incentive Plan amounting to $5.7 million, $1.2 million, and $0.8 million for specific periods. These figures are recorded in "general and administrative expenses."
While these excerpts provide insights into various aspects of employee and management compensation at Checkersrallys, they do not confirm whether a comprehensive schedule of officer compensation is included in the financial statements. A prospective franchisee would likely want to review the full financial statements to understand all compensation-related disclosures.
To gain clarity, a potential Checkersrallys franchisee should directly ask the franchisor whether the financial statements include a schedule of compensation of officers. If not, they should inquire about the availability of such information and how executive compensation is determined and disclosed to franchisees. Understanding the full scope of compensation practices can help franchisees assess the financial health and management structure of Checkersrallys.