Does the text specify any information about the company's employee benefits disclosed in the Checkersrallys financial statements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
expected stock-compensation cost for the next five years related to unvested service-based units not yet recognized is as follows:
| Fiscal year ending | A | mount |
|---|---|---|
| 2024 | $ | 393 |
| 2025 | 393 | |
| 2026 | 393 | |
| 2027 | 401 | |
| 2028 | 262 | |
| Total | $ | 1,842 |
Other Compensation
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.
16. Leases
The Company leases real estate for the operation of its restaurants as well as acts as a sublessor for the operation of certain franchised restaurants.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, the company sponsors a qualified defined contribution plan covering all non-director employees. The company did not match employee contributions, and the expense associated with this plan was less than $0.1 million for each of the periods from June 17, 2023, through January 1, 2024 (Successor), January 3, 2023, through June 16, 2023 (Predecessor), and for the years ended January 2, 2023, and January 3, 2022.
Additionally, Checkersrallys is partially self-insured for a portion of its expected losses under its workers' compensation and general liability programs. They also carry excess liability limits above the primary coverages. As of December 30, 2024, and January 1, 2024, Checkersrallys maintained a $2.1 million letter of credit as collateral securing general liability claims and self-insured workers' compensation claims until they are settled. The company is also self-insured, subject to umbrella policies, for health care claims for eligible participating employees, subject to certain deductibles and limitations. The self-insurance balances as of December 30, 2024, and January 1, 2024, were $4.3 million and $3.8 million, respectively.
Furthermore, employees of Checkersrallys participated in the BossCo Holdings, Inc. 2017 Management Incentive Plan, which is administered by BossCo Holdings. This plan was created to attract and retain employees and non-employee directors. The plan allows for granting Options, Restricted Stock, Restricted Stock Units, and Unrestricted Stock and was amended and restated February 25, 2021. This provides additional incentives for employees and directors within the Checkersrallys system.