Does the text specify if the financial statements of Checkersrallys include a schedule of selling, general, and administrative expenses?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ware costs of $0 million and $0.4 million, net of accumulated amortization. These amounts are included within the other assets line item in the accompanying consolidated balance sheets. The capitalized software is amortized on a straight-line basis over its estimated useful life.
Capitalized software amortization expense was $0.4 million, $0.5 million and $0.4 million for the fiscal year ended December 30, 2024 (Successor) and for the periods from June 17, 2023 through January 1, 2024 (Successor) and from January 3, 2023 through June 16, 2023 (Predecessor), respectively, and are recorded within general and administrative 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 mentions of general and administrative expenses. Specifically, capitalized software amortization expense is recorded within "general and administrative expense" in the consolidated statements of operations. Additionally, fixed lease costs for operating lease payments are included in "general and administrative expenses" within the accompanying consolidated statement of operations. These references suggest that these expenses are tracked, but the document does not explicitly state whether a detailed schedule of selling, general, and administrative expenses is provided as part of the financial statements.
While the FDD mentions that certain expenses are categorized under "general and administrative expenses," it does not confirm the existence of a comprehensive schedule. This means a prospective franchisee cannot definitively determine from this document if Checkersrallys provides a detailed breakdown of these expenses. The level of detail in financial reporting can vary among franchisors, with some offering more granular schedules than others.
Therefore, a potential Checkersrallys franchisee should directly ask the franchisor whether the financial statements include a schedule of selling, general, and administrative expenses. Understanding the components of these expenses is crucial for assessing the financial health and operational efficiency of Checkersrallys.