Are there any exceptions to the standard financial reporting period for Checkersrallys as noted in the text?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
lities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fiscal Year
The Company's fiscal reporting periods consist of 52 or 53 weeks ending on the Monday closest to December 31. References included herein to "year" or "years" ended represent fiscal years. The fiscal year ended December 30, 2024 consisted of 52 weeks. The periods January 3, 2023 to June 16, 2023 and June 17, 2023 to January 1, 2024 consisted of 24 and 28 weeks, respectively.
Due to the presentation of the Successor and Predecessor periods, the fiscal year ended December 30, 2024 refers to the period from January 2, 2024 through December 30, 2024 (Successor) and the period ended January 1, 2024 refers to the period from June 17, 2023 to January 1, 2024 (Successor). The period ended June 16, 2023 refers to the period from January 3, 2023 to June 16, 2023 (Predecessor).
Cash and Cash Equivalents
The Company considers all highly liquid instruments with original maturities of three months or less to be cash equivalents. The Company maintains cash and cash equivalent balances with financial institutions in excess of federal insured limits. The Company has not experienced any losses related to these balances, and it believes credit risk to be minimal.
The Company has restricted cash balances related to certain letters of credit and debt arrangements and are presented within cash and cash equivalents on the consolidated balance sheets.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company's fiscal reporting periods consist of either 52 or 53 weeks, concluding on the Monday closest to December 31st. The document specifies that references to "year" or "years" ended pertain to these fiscal years.
Notably, the first three quarters of Checkersrallys's fiscal year are composed of three 4-week periods each, while the fourth quarter may consist of either a 4-week or a 5-week period. There were some exceptions to the standard reporting periods. The periods from January 3, 2023, to June 16, 2023, and from June 17, 2023, to January 1, 2024, encompassed 24 and 28 weeks, respectively.
Furthermore, the year concluding on January 2, 2023, comprised 52 weeks, whereas the year ending on January 3, 2022, consisted of 53 weeks. The fiscal year ended December 30, 2024 refers to the period from January 2, 2024 through December 30, 2024 (Successor) and the period ended January 1, 2024 refers to the period from June 17, 2023 to January 1, 2024 (Successor). The period ended June 16, 2023 refers to the period from January 3, 2023 to June 16, 2023 (Predecessor).
Due to the Recapitalization Agreement, Checkersrallys is presenting a successor period for the fiscal year ended December 30, 2024 and the period of June 17, 2023, through January 1, 2024 and 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.