What was the total value of current assets acquired by Checkersrallys as part of the restructuring?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ome approaches, and the results were weighted appropriately.
(Tabular Dollars in Thousands, Except Share and per Share Data)
The following tables summarize the purchase consideration and the purchase price allocation to estimated fair value of the assets acquired and liabilities assumed as of the acquisition date, June 16, 2023:
| Fair Value of stock consideration | $ | 97,819 |
|---|---|---|
| Current assets: | 15.612 | |
| Cash and cash equivalents | 17,613 | |
| Accounts and notes receivable, net | 5,828 | |
| Inventory | 3,105 | |
| Prepaid expenses | 3,690 | |
| Other c |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the total value of current assets acquired as part of the out-of-court restructuring, which was executed on June 16, 2023, was $31.836 million. These current assets include cash and cash equivalents valued at $17.613 million, accounts and notes receivable (net) at $5.828 million, inventory at $3.105 million, prepaid expenses at $3.690 million, and other current assets at $1.600 million.
For a prospective Checkersrallys franchisee, this valuation of current assets is part of a broader business combination resulting from Topco acquiring Burger BossCo. The assets and liabilities were recorded at fair values at the date of the out-of-court restructuring. This means that the listed values reflect the estimated market values of these assets at the time of acquisition, which can impact the financial statements and future performance assessments of Checkersrallys.
The document also indicates that the total stock consideration for the acquisition was $97.8 million, comprised of 90 shares of Burger BossCo acquired by Topco. Understanding the valuation and allocation of assets and liabilities is crucial for franchisees as it provides insight into the financial health and stability of Checkersrallys post-restructuring. It's important to note that due to changes in the accounting basis of assets and liabilities, the financial statements before and after the restructuring are not directly comparable, as highlighted in the document.
Prospective franchisees should be aware of how these restructurings and valuations can affect the company's financial position and future strategies. It is advisable to seek professional financial advice to fully understand the implications of these figures on the franchise's potential profitability and sustainability.