Does the text specify any information about the company's capital structure disclosed in the Checkersrallys financial statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
y Council that we established and help support. The council's address is 4300 West Cypress Street, Suite 600, Tampa, Florida 33607; and email address FAC@Checkers.com.
ITEM 21 FINANCIAL STATEMENTS
As a result of the Recapitalization Agreement, the Company is presenting a successor period for the fiscal year ended December 30, 2024 and the period of June 17, 2023, through January 1, 2024 ("Successor Periods") and predecessor periods of January 3, 2023 through June 16, 2023 and fiscal years ended January 2, 2023 and January 3, 2022 (each individually referred to as a "Predecessor Period" and collectively as the "Predecessor Periods"), within the audited financial statements. See footnote 1 within the audited financial statements for further information relating to the transaction.
Attached to this Franchise Disclosure Document as Exhibit H are our audited consolidated balance sheets as of December 30, 2024 (Successor), January 1, 2024 (Successor) and January 2, 2023 (Predecessor), and the related consolidated statements of operations, stockholder's equity (deficit) and cash flows for the fiscal year ending December 30, 2024 (Successor), the periods June 17, 2023 through January 1, 2024 (Successor) and January 3, 2023 through June 16, 2023 (Predecessor), and the fiscal years ending January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor), and the related notes.
EXHIBIT H
FINANCIAL STATEMENTS
Consolidated Financial Statements and Report of Independent Certified Public Accountants
**Checkers Drive-In Restaurants, Inc.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company underwent a Recapitalization Agreement, which led to the presentation of successor and predecessor periods in the audited financial statements. Further details regarding this transaction are available in footnote 1 of the audited financial statements. As part of an Out-of-Court Restructuring, each Second Lien Lender exchanged their Second Lien Loans for a pro rata share of 5% of the equity of Topco.
The financial statements include consolidated balance sheets as of December 30, 2024 (Successor), January 1, 2024 (Successor), and January 2, 2023 (Predecessor). They also feature the related consolidated statements of operations, stockholder's equity (deficit), and cash flows for various periods, including the fiscal year ending December 30, 2024 (Successor), the period from June 17, 2023, through January 1, 2024 (Successor), the period from January 3, 2023, through June 16, 2023 (Predecessor), and the fiscal years ending January 2, 2023 (Predecessor) and January 3, 2022 (Predecessor), along with related notes.
These statements and notes offer insights into Checkersrallys's financial performance and position over these periods, providing prospective franchisees with information to evaluate the company's financial health. The inclusion of both successor and predecessor periods reflects significant changes in the company's capital structure due to the Recapitalization Agreement, which franchisees should carefully consider. The audit was conducted by Grant Thornton LLP, who expressed an opinion that the financial statements present fairly the financial position of Checkers Drive-In Restaurants, Inc. and Subsidiaries.