Independent Operator Notes and Independent Operator Receivables (Tables)
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3 Months Ended |
Apr. 04, 2026 |
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| Receivables [Abstract] |
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| Schedule of Amounts Due from Independent Operators |
Amounts due from IOs and the related allowances as of April 4, 2026 and January 3, 2026 consisted of the following (amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance | | Net | | Gross | | Current Portion | | Long-term Portion | | Total | | Current Portion | | Long-term Portion | | April 4, 2026 | | | | | | | | | | | | | Independent operator notes | $ | 53,263 | | | $ | (409) | | | $ | (18,638) | | | $ | 34,216 | | | $ | 2,091 | | | $ | 32,125 | | | Independent operator receivables | 31,155 | | | (14,290) | | | (2,058) | | | 14,807 | | | 11,990 | | | 2,817 | | | Total | $ | 84,418 | | | $ | (14,699) | | | $ | (20,696) | | | $ | 49,023 | | | $ | 14,081 | | | $ | 34,942 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance | | Net | | Gross | | Current Portion | | Long-term Portion | | Total | | Current Portion | | Long-term Portion | | January 3, 2026 | | | | | | | | | | | | | Independent operator notes | $ | 57,532 | | | $ | (454) | | | $ | (13,864) | | | $ | 43,214 | | | $ | 2,301 | | | $ | 40,913 | | | Independent operator receivables | 30,743 | | | (11,799) | | | (1,427) | | | 17,517 | | | 14,682 | | | 2,835 | | | Total | $ | 88,275 | | | $ | (12,253) | | | $ | (15,291) | | | $ | 60,731 | | | $ | 16,983 | | | $ | 43,748 | |
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| Schedule of Allowance for Credit Loss Activity |
A summary of activity in the IO notes and IO receivables allowance was as follows (amounts in thousands): | | | | | | | | | | | | | | | | | 13 Weeks Ended | | | | April 4,
2026 | | March 29,
2025 | | | | | | Beginning balance | $ | 27,544 | | | $ | 18,479 | | | | | | Provision for IO notes and IO receivables reserves (1) | 17,965 | | | 3,283 | | | | | | | | | | | | | | Write-off of uncollectible IO notes and IO receivables (2) | (10,114) | | | (151) | | | | | | Ending balance | $ | 35,395 | | | $ | 21,611 | | | | | |
_______________________ (1) For the first quarter of fiscal 2026, includes $15.5 million related to certain Operator Agreement Terminations under the Optimization Plan, as defined in Note 12. (2) For the first quarter of fiscal 2026, includes $8.1 million related to certain Operator Agreement Terminations under the Optimization Plan, as defined in Note 12.
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| Schedule of Independent Operator Notes by Credit Quality Indicators and Year of Origination |
The following tables present the outstanding gross balance of IO notes by fiscal year of origination and credit quality indicator as of April 4, 2026 and January 3, 2026 (amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year of Origination | | | | Credit Quality Indicator | 2026 (YTD) | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Total | | April 4, 2026 | | | | | | | | | | | | | | | TCAP | $ | 1,201 | | | $ | 4,325 | | | $ | 5,108 | | | $ | 2,778 | | | $ | 3,150 | | | $ | 4,171 | | | $ | 20,733 | | | Non-TCAP | 3,075 | | | 6,520 | | | 5,142 | | | 2,295 | | | 3,122 | | | 4,552 | | | 24,706 | | | New store | 1,032 | | | 6,792 | | | — | | | — | | | — | | | — | | | 7,824 | | | Total | $ | 5,308 | | | $ | 17,637 | | | $ | 10,250 | | | $ | 5,073 | | | $ | 6,272 | | | $ | 8,723 | | | $ | 53,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year of Origination | | | | Credit Quality Indicator | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | | January 3, 2026 | | | | | | | | | | | | | | | TCAP | $ | 4,826 | | | $ | 5,982 | | | $ | 3,972 | | | $ | 3,907 | | | $ | 1,589 | | | $ | 2,489 | | | $ | 22,765 | | | Non-TCAP | 7,253 | | | 4,745 | | | 2,762 | | | 3,680 | | | 2,285 | | | 2,689 | | | 23,414 | | | New store | 9,808 | | | 1,545 | | | — | | | — | | | — | | | — | | | 11,353 | | | Total | $ | 21,887 | | | $ | 12,272 | | | $ | 6,734 | | | $ | 7,587 | | | $ | 3,874 | | | $ | 5,178 | | | $ | 57,532 | |
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