Are there any exceptions noted in the text regarding the financial statements of Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
GRANT THORNTON LLP REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors Checkers Drive-In Restaurants, Inc. and Subsidiaries
Opinion
We have audited the consolidated financial statements of Checkers Drive-In Restaurants, Inc. and Subsidiaries (the "Company"), which comprise the consolidated balance sheet as of December 30, 2024 (Successor) and the related consolidated statement of operations, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements.
Other Matter
The consolidated financial statements of the Company as of January 1, 2024 (Successor), for the period from June 17, 2023 through January 1, 2024 (Successor) and the period from January 3, 2023 through June 16, 2023 (Predecessor) were audited by other auditors, who expressed an unmodified opinion on those consolidated financial statements in their report dated August 13, 2024.
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.
As required by ASC 842, Leases, Management makes certain estimates and assumptions regarding each new lease and sublease agreement, renewal and amendment, including, but not limited to, property values, property lives, discount rates and term, all of which can impact the classification and accounting for a lease or sublease as operating or finance for leases where the Company is a lessee and operating, sale-type and direct financing for leases where the company is lessor. The amount of depreciation and amortization, interest and rent expense and income reported would vary if different estimates and assumptions were used.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, 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, as well as predecessor periods of January 3, 2023, through June 16, 2023, and fiscal years ended January 2, 2023, and January 3, 2022, within the audited financial statements. This is a result of the Recapitalization Agreement. Footnote 1 within the audited financial statements provides further information relating to this transaction.
Grant Thornton LLP audited the consolidated financial statements of Checkers Drive-In Restaurants, Inc. and Subsidiaries as of December 30, 2024. Other auditors audited the consolidated financial statements as of January 1, 2024, for the period from June 17, 2023, through January 1, 2024, and the period from January 3, 2023, through June 16, 2023. They expressed an unmodified opinion on those consolidated financial statements in their report dated August 13, 2024.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of these statements requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from these estimates. As required by ASC 842, Leases, Management makes certain estimates and assumptions regarding each new lease and sublease agreement, renewal and amendment, including, but not limited to, property values, property lives, discount rates and term, all of which can impact the classification and accounting for a lease or sublease as operating or finance for leases where the Company is a lessee and operating, sale-type and direct financing for leases where the company is lessor. The amount of depreciation and amortization, interest and rent expense and income reported would vary if different estimates and assumptions were used.