Does the text specify any obligations related to financial reporting for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Item 21 includes the 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 as Exhibit H.
These financial statements were audited by both Grant Thornton LLP and Ernst & Young LLP, who issued opinions on the consolidated financial statements of Checkers Drive-In Restaurants, Inc. and subsidiaries. These opinions confirm that the financial statements present fairly the financial position, results of operations, and cash flows of the company in accordance with accounting principles generally accepted in the United States of America.
The inclusion of these audited financial statements and the reports of independent auditors indicates that Checkersrallys adheres to standard financial reporting practices. This provides prospective franchisees with an overview of the company's financial health and performance, which is essential for making an informed investment decision.