Does the text specify if the financial statements of Checkersrallys include a schedule of retained earnings?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- | | (98,648) | | Income tax expense (benefit) | | (24,723) | | 540 | | (7,542) | | Net income (loss) | $ | 21,260 | $ | (2,570) | $ | (91,106) |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(In Thousands)
| Successor | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Stockholders' Equity | ||||||
| Balances at June 17, 2023 | $ | - | $ | - | $ | - | $ | - | |
| Contribution from business combination | - | 97,819 | - | 97,819 | |||||
| Stock-based compensation | - | 132 | - | 132 | |||||
| Co-op retained earnings adjustment | - | - | (86) | (86) | |||||
| Net loss | - | - | (2,570) | (2,570) | |||||
| Balances at January 1, 2024 | - | 97,951 | (2,656) | 95,295 | |||||
| Stock-based compensation |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the provided financial statements include information on retained earnings. Specifically, the balance sheets detail the retained earnings (deficit) for various periods. For instance, the balance at December 30, 2024, shows retained earnings of $18,785. The document also presents how retained earnings are affected by items such as co-op retained earnings adjustments and net income or loss.
For a prospective franchisee, this means that Checkersrallys provides insight into how the company manages its earnings and losses, which can be a useful indicator of financial health. Understanding the components that impact retained earnings, such as adjustments from co-op activities and overall net income, can help a franchisee assess the stability and profitability of Checkersrallys. This information is valuable for making informed investment decisions.
However, the provided excerpts do not explicitly state whether a separate schedule of retained earnings is included as part of the financial statements. While the balance sheets present retained earnings figures, a dedicated schedule would provide a more detailed breakdown of changes in retained earnings over specific periods. This schedule typically reconciles the beginning and ending retained earnings balances, showing items such as net income, dividends, and other adjustments.
Therefore, while the FDD includes retained earnings information within the balance sheets, it remains unclear if a separate, detailed schedule of retained earnings is provided. A prospective franchisee should consider asking Checkersrallys for clarification on whether a schedule of retained earnings is available for review to gain a more comprehensive understanding of the company's financial performance.