Does the text specify any reclassifications disclosed in the Checkersrallys financial statements?

According to Checkersrallys's 2025 Franchise Disclosure Document, the company changed its method of accounting for leases in the fiscal year ended January 2, 2023, due to the adoption of ASU No. 2016-02, Leases. This represents a reclassification due to the adoption of a new accounting standard.

This change in accounting method could impact how Checkersrallys reports its financial performance and position. For franchisees, understanding these changes is crucial because leases are a significant part of the restaurant business. The adoption of ASU No. 2016-02 indicates that Checkersrallys has updated its accounting practices to comply with the latest standards, which aims to provide more transparency and comparability in financial reporting.

Prospective franchisees should review the full audited financial statements and related notes in Exhibit H of the FDD to fully understand the implications of this change. Consulting with a financial advisor or accountant is advisable to assess how these accounting changes may affect their investment in a Checkersrallys franchise.