Does the text specify any information about the company's debt disclosed in the Checkersrallys financial statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Net loss on disposal of fixed assets 670 839 606 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other noncurrent assets 231 Changes in other noncurrent assets 232 Decrease (increase) in other noncurrent assets 233 Changes in other noncurrent assets (1,241) Decrease (increase) in other noncurrent assets 231 Control of the distribution of the current assets (1,241) Decrease (increase) in other noncurrent assets Depreciation and amortization 10,066) Amortization of deferred financing costs 54 Provision for credit losses 122 Deferred income tax expense (benefit) 4 Noncash operating lease expense, net 5,490 Right-of-use asset amortization for finance lease 455 Change in favorable leasehold interests 232 Change in unfavorable leasehold interests (31) Noncash stock based compensation 132 Noncash interest on long-term debt 2,534 Impairment of long-lived assets 670 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net 0,1618 Decrease (increase) in inventory Decrease (increase) in prepaid expenses Decrease (increase) in other noncurrent assets 231 Provision for credit losses 122 Deferred income tax expense (benefit) 4 Noncash operating lease expense, net 5,490 Right-of-use asset amortization for finance lease 455 Change in favorable leasehold interests 232 Change in unfavorable leasehold interests (31) Noncash stock based compensation 132 Noncash interest on long-term debt 2,534 Impairment of long-lived assets 623 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants - Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net (1,693) Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Right-of-use asset amortization for finance lease 455 Change in favorable leasehold interests 232 Change in unfavorable leasehold interests (31) Noncash stock based compensation 132 Noncash interest on long-term debt 2,534 Impairment of long-lived assets 623 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants - Changes in operating assets and liabilities, net of acquisitions: - Decrease (increase) in accounts and notes receivable, net (1,693) Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Change in unfavorable leasehold interests (31) Noncash stock based compensation Noncash interest on long-term debt Noncash interest on long-term debt Noncash interest on long-term debt 132 Noncash interest on long-term debt 2,534 Impairment of long-lived assets 623 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 25 Noncash stock based compensation 132 Noncash interest on long-term debt 2,534 Impairment of long-lived assets 623 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net 927 Decrease (increase) in inventory 927 Decrease (increase) in other current assets (1,618) Decrease (increase) in other noncurrent assets (1,241) Decrease (increase) in other noncurrent assets 231 Noncash interest on long-term debt 2,534 Impairment of long-lived assets 623 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net (1,693) Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231
- Impairment of long-lived assets 623 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net 927 Decrease (increase) in inventory 927 Decrease (increase) in other current assets (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Net loss on disposal of fixed assets 670 Net loss on sales of restaurants - Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net (1,693) Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Net loss on sales of restaurants Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Changes in operating assets and liabilities, net of acquisitions: Decrease (increase) in accounts and notes receivable, net Decrease (increase) in inventory Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Decrease (increase) in accounts and notes receivable, net (1,693) Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Decrease (increase) in inventory 927 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Decrease (increase) in prepaid expenses (1,618) Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Decrease (increase) in other current assets (1,241) Decrease (increase) in other noncurrent assets 231 Decrease (increase) in other noncurrent assets 231 Donesto (Maratao) in one month in the state 159 (Decrease) increase in accounts payable (16) (Decrease) increase in accrued liabilities, accrued wages and benefits, deferred revenue, self-insurance, and long-term liabilities (7,774) (Decrease) increase in reserve for restaurant retirement and refranchise costs (544) Change in operating lease liabilities (8,154) ia ( Other changes, net (237) Net cash (used in) provided by operating activities (7,222) Investing activities (7,269) Acquisition of restaurants, net of cash acquired (1,365) Proceeds from sales of restaurants 842 Financing activities Payments on short-term financing (940) Debt issuance costs (500) Principal payments on long-term debt and related party credit facility (1,304) Principal payments on capital leases and financing (47) Repayments of finance lease liabilities (254) Proceeds from short-term financing 1,540 Net cash provided by (used in) financing activities 9,435 Net increase (decrease) in cash, cash equivalents (5,056) Cash and cash equivalents at beginning of period 17,613 Cash and cash equivalents at end of period $ 12,557
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the consolidated statements of cash flows include details regarding the company's debt. Specifically, the document mentions "Noncash interest on long-term debt" and "Principal payments on long-term debt and related party credit facility." These line items indicate that Checkersrallys has long-term debt and related obligations. The document provides figures for these items across different periods, offering insight into how Checkersrallys manages its debt.
For example, the noncash interest on long-term debt is listed as $2,534,000 for the period from June 17, 2023, through January 1, 2024 (Successor). It is also listed as $13,808,000 for Sugar 2, 2023 (Predecessor) and $9,882,000 for CPredecessor). Principal payments on long-term debt and related party credit facility were $1,304,000, $1,360,000 and $2,380,000 for the corresponding periods. These figures are in thousands.
Additionally, the document notes "Payments on short-term financing" and "Proceeds from short-term financing," indicating that Checkersrallys utilizes short-term financing as well. Principal payments on capital leases and financing, and repayments of finance lease liabilities are also listed. These details are important for prospective franchisees to understand the financial obligations and debt management strategies of Checkersrallys. Reviewing these figures can help potential franchisees assess the financial health and stability of the company.
Furthermore, the document mentions debt issuance costs, with a specific instance of $500,000. This provides additional transparency regarding the costs associated with Checkersrallys's debt financing activities. All of these factors should be considered by a prospective franchisee when evaluating the overall financial condition of Checkersrallys.