Franchise (TAX) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 01, 2023	May 05, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	001-35588
Entity Registrant Name	Franchise Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3561876
Entity Address, Address Line One	109 Innovation Court, Suite J
Entity Address, City or Town	Delaware,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43015
City Area Code	740)
Local Phone Number	-2222
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35,172,623
Entity Central Index Key	0001528930
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	FRG
Security Exchange Name	NASDAQ
Series A Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	7.50% Series A Cumulative Preferred Stock, par value $0.01 per share and liquidation preference of $25.00 per share
Trading Symbol	FRGAP
Security Exchange Name	NASDAQ

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1,104,821	$ 1,135,470
Operating expenses:
Direct Costs of Leased and Rented Property or Equipment	2,626	2,861
Cost of Revenue	669,109	628,109
Selling, general, and administrative expenses	387,241	376,995
Goodwill, Impairment Loss	75,000	0
Total operating expenses	1,131,350	1,005,104
Loss from operations	(26,529)	130,366
Other income (expense):
Bargain purchase gain	0	(67)
Foreign currency transaction gain	(1,834)	(21,977)
Interest expense	(87,129)	(92,327)
Income tax benefit	(7,175)	3,678
Comprehensive income (loss)	(108,317)	12,317
Other comprehensive income (loss)	0	0
Loss before income taxes	$ (115,492)	$ 15,995
Net income (loss) per share:
Weighted Average Number of Shares Outstanding, Basic	35,002,174	40,307,412
Weighted Average Number of Shares Outstanding, Diluted	35,002,174	41,107,793
Product [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 976,808	$ 979,164
Operating expenses:
Cost of Goods and Services Sold	656,904	616,585
Service [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	120,567	148,282
Operating expenses:
Cost of Goods and Services Sold	9,579	8,663
Rental
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 7,446	$ 8,024

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 98,266	$ 80,783
Receivables:
Total Receivables, Current, Net	151,723	170,162
Inventory, Net	759,891	736,841
Assets Held-for-sale, Not Part of Disposal Group, Current	7,633	8,528
Other current assets	29,610	27,272
Total current assets	1,337,490	1,316,499
Property, equipment, and software, net	234,705	223,718
Equity Securities, FV-NI, Noncurrent	9,758	11,587
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent	11,202	11,735
Goodwill	663,466	737,402
Operating Lease, Right-of-Use Asset	910,269	890,949
Indefinite-Lived Trade Names	222,703	222,703
Other intangible assets, net	114,000	116,799
Other assets	65,232	59,493
Total assets	3,607,262	3,630,412
Current liabilities:
Current installments of long-term obligations	11,771	6,935
Secured Debt, Current	412,862	340,021
Operating Lease, Liability, Current	179,246	179,519
Accounts payable and accrued expenses	415,665	376,895
Deferred revenue - current	40,983	40,541
Total current liabilities	1,060,527	943,911
Long-term Debt and Lease Obligation	741,174	720,474
Long-term Debt, Excluding Current Maturities	1,394,320	1,374,479
Secured Long-term Debt, Noncurrent	68,163	107,448
Other Liabilities, Noncurrent	65,431	62,720
Total liabilities	3,329,615	3,209,032
Equity:
Additional paid-in capital	310,160	311,069
Retained earnings	(32,909)	109,917
Total equity	277,647	421,380
Total liabilities and equity	3,607,262	3,630,412
Accounts Receivable from Securitization	290,367	292,913
Asset-backed Securities, Securitized Loans and Receivables
Receivables:
Total Receivables, Current, Net		292,913
Accounts Receivable, after Allowance for Credit Loss, Noncurrent	38,437	39,527
Current receivables, net
Receivables:
Total Receivables, Current, Net	151,723	170,162
Special voting preferred stock
Equity:
Preferred stock	45	45
Class A common stock
Equity:
Common stock	$ 351	$ 349

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Apr. 01, 2023	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss	$ (3,038,000)	$ (4,106,000)
allowance for credit losses	(71,148,000)	(57,095,000)
Allowance for Credit Losses, Securitized Receivables, Noncurrent	(9,418,000)	(7,705,000)
Accounts Receivable, Allowance for Credit Loss, Noncurrent	(1,064,000)	(892,000)
Finite-Lived Intangible Assets, Accumulated Amortization	$ 26,907,000	$ 24,003,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Issued	4,541,125	4,541,125
Class A common stock
Common Stock, Value, Issued	$ 351,000	$ 349,000
Common Stock [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	35,148,564
Common Stock, Shares, Outstanding	35,148,564

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders Equity Statement shares in Thousands, $ in Thousands	USD ($)	USS ($)	Common Stock [Member] USD ($) shares	Preferred Stock [Member] USD ($) shares	Parent [Member] USD ($)	Parent [Member] Cumulative Effect, Period of Adoption, Adjustment USD ($)	Additional Paid-in Capital [Member] USD ($)	Additional Paid-in Capital [Member] USS ($)	Retained Earnings [Member] USD ($)	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment USD ($)
Shares, Outstanding, Beginning Balance at Dec. 25, 2021 | shares			40,297	4,541
Equity, Attributable to Parent, Beginning Balance at Dec. 25, 2021			$ 403,000	$ 45,000	$ 762,831,000		$ 475,396,000		$ 286,987,000
Net Income (Loss) Attributable to Parent					12,317,000				12,317,000
Stock Issued During Period, Value, Stock Options Exercised					180,000		180,000
Stock Issued During Period, Shares, Acquisitions | shares			41
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition					5,029,000		5,028,000
Dividends	$ (26,567,000)								(26,567,000)
Dividends, Preferred Stock, Cash					(2,128,000)				(2,128,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares			15
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture			$ 1,000
Stock Issued During Period, Value, New Issues		$ 24						$ 24
Stock Issued During Period, Shares, New Issues | shares			1
Equity, Attributable to Parent, Ending Balance at Mar. 26, 2022			$ 404,000	$ 45,000	751,686,000		480,628,000		270,609,000
Shares, Outstanding, Ending Balance at Mar. 26, 2022 | shares			40,354	4,541
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 | shares			34,926	4,541
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2022	421,380,000		$ 349,000	$ 45,000	421,380,000	$ (9,978,000)	311,069,000		109,917,000	$ (9,978,000)
Net Income (Loss) Attributable to Parent					(108,317,000)				(108,317,000)
Stock Issued During Period, Value, Stock Options Exercised					131,000		130,000
Stock Issued During Period, Shares, Acquisitions | shares			208
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition					(1,038,000)		(1,039,000)
Dividends	(22,403,000)								(22,403,000)
Dividends, Preferred Stock, Cash					(2,128,000)				(2,128,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares			15
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture			$ 1,000
Equity, Attributable to Parent, Ending Balance at Apr. 01, 2023	$ 277,647,000		$ 351,000	$ 45,000	$ 277,647,000		$ 310,160,000		$ (32,909,000)
Shares, Outstanding, Ending Balance at Apr. 01, 2023 | shares			35,149	4,541

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended		12 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022	Dec. 25, 2021
Operating Activities
Net loss	$ (108,317,000)	$ 12,317,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses for accounts receivable	20,327,000	15,103,000
Goodwill, Impairment Loss	75,000,000	0	$ 0
Other Depreciation and Amortization	21,851,000	22,033,000
Amortization of Debt Issuance Costs	2,830,000	6,379,000
Amortization of Debt Discount (Premium)	27,000,000	29,801,000
Stock-based compensation expense	2,719,000	5,447,000
Change in fair value of investment	1,830,000	23,723,000
Gain (Loss) on Sale of Intangible and Other Assets	0	(2,206,000)
Gain (Loss) on Disposition of Other Assets	(42,000)	(2,227,000)
Changes in other assets and liabilities	(23,511,000)	(101,227,000)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	19,687,000	9,143,000
Investing Activities
Assets Acquired from Franchisees and Area Developers	(14,219,000)	(9,752,000)
Proceeds from Sale of Intangible Assets	1,166,000	2,554,000
Payments to Acquire Businesses, Net of Cash Acquired	(3,682,000)	(3,930,000)
Net cash (used in) investing activities	(16,735,000)	(11,128,000)
Financing Activities
Dividends paid	(25,698,000)	(27,315,000)
Proceeds from Long-term Lines of Credit	415,000,000	67,000,000
Repayments of Other Long-term Debt	(387,585,000)	(182,096,000)
Finance Lease, Principal Payments	(1,207,000)	(768,000)
Proceeds from Issuance of Secured Debt	132,151,000	57,358,000
Repayments of Secured Debt	(97,210,000)	(55,096,000)
Payment for debt issue costs	(17,393,000)	0
Payment, Tax Withholding, Share-based Payment Arrangement	(3,626,000)	(215,000)
Net cash provided by (used in) financing activities	14,432,000	(141,132,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	17,384,000	(143,117,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	98,634,000	149,597,000	81,250,000	$ 292,714,000
Cash and Cash Equivalents, at Carrying Value, Ending Balance	98,266,000	149,597,000	$ 80,783,000
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest of $4 and $3, respectively	1,562,000	274,000
Cash paid for taxes, net of refunds	30,847,000	21,424,000
Cash Paid for Interest on Secured Debt	23,757,000	16,830,000
Payments to Acquire Software	2,229,000	3,177,000
Capital Expenditures Incurred but Not yet Paid	12,741,000	0
Restricted Cash, Noncurrent	368,000	0
Restricted Cash and Cash Equivalents	$ 98,634,000	$ 149,597,000

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	Basis of Presentation Unless otherwise stated, references to the “Company,” “we,“ “us,” and “our” in this Quarterly Report on Form 10-Q (this “Quarterly Report”) refer to Franchise Group, Inc. and its direct and indirect subsidiaries on a consolidated basis. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2022 that was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2023 (the “Form 10-K”). In the opinion of management, all adjustments (including those of a normal recurring nature) necessary for a fair presentation of such condensed consolidated financial statements in accordance with GAAP have been recorded. The December 31, 2022 balance sheet information was derived from the audited financial statements as of that date. Reclassifications Certain prior year amounts within the footnotes have been reclassified to conform to the current year presentation. Recent Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which changes how companies measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard replaces the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost (which generally will result in the earlier recognition of allowances for losses) and requires companies to record allowances for available-for-sale debt securities, rather than reduce the carrying amount. In addition, companies will have to disclose significantly more information, including information used to track credit quality by year of origination, for most financing receivables. Effective January 1, 2023, the Company adopted ASU 2016-13 and applied a cumulative-effect adjustment to retained earnings. The Company has reviewed its entire portfolio of assets recognized on the balance sheet as of December 31, 2022 and identified customer receivables and securitized receivables as the materially impacted assets within the scope of ASC 326. Upon adoption of ASC 326 the Company recorded a net decrease to retained earnings of $10.0 million as of January 1, 2023. Prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet as a result of the adoption of ASC 326 were as follows: Impact of Adoption of ASC 326 (In thousands) Balance at Adjustments due to ASC 326 Balance at Assets Current receivables, net $ 170,162 $ (654) $ 169,508 Current securitized receivables, net 292,913 (11,619) 281,294 Non-current securitized receivables, net 39,527 (1,568) 37,959 Deferred income taxes 38,528 3,863 42,391 Stockholders’ Equity Retained earnings $ 109,917 $ (9,978) $ 99,939

Acquisitions

Acquisitions	3 Months Ended
	Apr. 01, 2023
Business Combinations [Abstract]
Acquisitions	(2) Acquisitions The Company continually looks to diversify and grow its portfolio of brands through acquisitions. On February 28, 2023, the Company’s Pet Supplies Plus segment acquired 20 stores through bankruptcy proceedings of a third party for approximately $3.7 million. The components of the preliminary purchase price allocation are not presented herein due to the immateriality of the transaction to the Company overall. The Company’s Pet Supplies Plus segment subsequently franchised 12 of the 20 acquired stores.

Notes and Accounts Receivable

Notes and Accounts Receivable	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Accounts and Notes Receivable	Accounts and Notes Receivable Current and non-current receivables as of April 1, 2023 and December 31, 2022 are presented in the Condensed Consolidated Balance Sheets as follows: (In thousands) April 1, 2023 December 31, 2022 Trade accounts receivable $ 30,916 $ 40,165 Customer accounts receivable 26,266 56,639 Franchisee accounts receivable 58,795 46,778 Notes receivable 2,211 2,361 Income tax receivable 36,573 28,325 Allowance for credit losses (3,038) (4,106) Current receivables, net 151,723 170,162 Notes receivable, non-current 12,266 12,627 Allowance for credit losses, non-current (1,064) (892) Non-current receivables, net 11,202 11,735 Total receivables $ 162,925 $ 181,897 Allowance for Credit Losses The adequacy of the allowance for credit losses is assessed on a quarterly basis and adjusted as deemed necessary. Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for credit losses. Expected credit losses for trade and franchisee accounts receivable are immaterial. Notes receivable are due from the Company’s franchisees and are collateralized by the underlying franchise. The debtors’ ability to repay the notes is dependent upon both the performance of the franchisee’s industry as a whole and the individual franchise areas. Activity in the allowance for credit losses for trade, customer, and franchisee accounts receivable and notes receivable for the three months ended April 1, 2023 and March 26, 2022 were as follows: Three Months Ended (In thousands) April 1, 2023 March 26, 2022 Balance at beginning of period $ 4,998 $ 6,192 Cumulative effect of adopted accounting standards 654 — Provision for credit loss expense (benefit) (1,541) (669) Write-offs, net of recoveries (9) — Balance at end of period $ 4,102 $ 5,523 Past due amounts are primarily attributable to trade and franchisee accounts receivable that have been generated over the past year and are past due by 1-30 days. The delinquency distribution of accounts and notes receivable past due at April 1, 2023 were as follows: April 1, 2023 (In thousands) Past due Current Total receivables Accounts receivable $ 8,311 $ 107,666 $ 115,977 Notes receivable — 14,417 14,417 Total accounts and notes receivable $ 8,311 $ 122,083 $ 130,394 In order to monetize its customer credit receivables portfolio, the Company's Badcock Home Furniture & more (“Badcock”) segment sells beneficial interests in customer revolving lines of credit pursuant to securitization transactions. The Company securitized an additional $133.4 million of its customer credit receivables portfolio during the three months ended April 1, 2023. For additional details regarding these securitizations, refer to “Note 5 – Securitized Accounts Receivable” in the Form 10-K. When securitized receivables are delinquent for approximately one year, the estimated uncollectible amount from the customer is written off and the corresponding securitized accounts receivable is reduced. Financial instruments that could potentially subject the Company to concentrations of credit risk consist of accounts receivable with its customers. The Company manages such risk by managing the customer accounts receivable portfolio using delinquency as a key credit quality indicator. Management believes the allowance is adequate to cover the Company’s credit loss exposure. Due to their non-recourse nature, the Company will record a gain on extinguishment for any debt secured by uncollectible accounts receivable in the future when the debt meets the extinguishment requirements in accordance with ASC 470, “Debt”. Activity in the allowance for credit losses on securitized accounts for the three months ended April 1, 2023 and March 26, 2022 was as follows: Three Months Ended (In thousands) April 1, 2023 March 26, 2022 Balance at beginning of period $ 64,800 $ — Cumulative effect of adopted accounting standards 13,187 — Provision for credit loss expense 21,995 15,792 Write-offs, net of recoveries (19,416) (12,126) Balance at end of period $ 80,566 $ 3,666 Current amounts include receivables for customers who have made a payment in the past 30 days. Any customers who have not made a required payment within the last 30 days are considered past due. The following table presents the delinquency distribution of the carrying value of customer accounts receivable by year of origination as of April 1, 2023: Delinquency Bucket 2023 2022 2021 Prior Total (in thousands) Current $ 76,678 $ 167,866 $ 22,218 $ 5,649 $ 272,411 1-30 12,103 32,889 6,926 1,987 53,904 31-60 1,310 7,976 2,533 1,008 12,827 61-90 — 5,781 1,931 735 8,448 91+ — 41,224 28,222 11,532 80,977 Total $ 90,091 $ 255,735 $ 61,830 $ 20,910 $ 428,567 Servicing revenue, interest income and interest expense generated from securitized receivables for the three months ended April 1, 2023 and March 26, 2022 were as follows: (In thousands) April 1, 2023 March 26, 2022 Securitization servicing revenue $ 3,245 $ 2,652 Interest income from securitization 1 30,475 65,269 Interest expense, debt secured by accounts receivable (48,125) (65,299) 1 Includes interest income from Badcock customer receivables (refer to “Note 3 – Accounts and Notes Receivable”) and securitized receivables.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company performs impairment tests for goodwill as of the end of July of each fiscal year and between annual impairment tests if an event occurs or circumstances change that would more likely than not reduce the fair values of the Company’s reporting units below their carrying values. As a result of the Company’s American Freight segment’s underperformance compared to projections for the three months ended April 1, 2023, as well as current macroeconomic conditions, the Company updated its long-term forecasts. The Company performed an interim goodwill impairment quantitative assessment as of April 1, 2023, and based on the results of the analysis, the Company recorded a non-cash goodwill impairment charge of $75.0 million, which was recorded in “Goodwill impairment” in the accompanying Condensed Consolidated Statements of Operations. Other than the American Freight segment’s accumulated goodwill impairment of $70.0 million as of December 31, 2022, no other reporting units had accumulated goodwill impairment losses recorded. The estimated fair value of the Company’s American Freight reporting unit was calculated using a weighted-average of values determined from an income approach and a market approach. The income approach involves estimating the fair value of each reporting unit by discounting its estimated future cash flows using a discount rate that would be consistent with a market participant’s assumption. The market approach bases the fair value measurement on information obtained from observed stock prices of public companies and recent merger and acquisition transaction data of comparable entities. In order to estimate the fair value of goodwill, management must make certain estimates and assumptions that affect the total fair value of the reporting unit including, among other things, an assessment of market conditions, projected cash flows, discount rates and growth rates. Management’s estimates of projected cash flows related to the reporting unit include, but are not limited to, future earnings of the reporting unit, assumptions about the use or disposition of assets included in the reporting unit, estimated remaining lives of those assets, and future expenditures necessary to maintain the assets’ existing service potential. The assumptions in the fair value measurement reflect the current market environment, industry-specific factors and company-specific factors. Changes in the carrying amount of goodwill for the three months ended April 1, 2023 are as follows: Vitamin Shoppe Pet Supplies Plus American Freight Buddy’s Sylvan Total Balance as of December 31, 2022 $ 1,277 $ 336,791 $ 300,829 $ 79,099 $ 19,406 $ 737,402 Acquisitions — 3,690 — — — 3,690 Goodwill impairment — — (75,000) — — (75,000) Disposals and purchase accounting adjustments — (2,626) — — — (2,626) Balance as of April 1, 2023 $ 1,277 $ 337,855 $ 225,829 $ 79,099 $ 19,406 $ 663,466 Components of intangible assets as of April 1, 2023 and December 31, 2022 were as follows: April 1, 2023 (In thousands) Gross carrying amount Accumulated Net carrying amount Indefinite lived tradenames $ 222,703 $ — $ 222,703 Intangible assets: Franchise and dealer agreements $ 96,005 $ (16,218) $ 79,787 Customer contracts 42,528 (9,807) 32,721 Other intangible assets 2,374 (882) 1,492 Total intangible assets $ 140,907 $ (26,907) $ 114,000 December 31, 2022 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Indefinite lived tradenames $ 222,703 $ — $ 222,703 Intangible assets: Franchise and dealer agreements $ 96,005 $ (14,348) $ 81,657 Customer contracts 42,484 (8,878) 33,606 Other intangible assets 2,313 (777) 1,536 Total intangible assets $ 140,802 $ (24,003) $ 116,799

Revenue Revenue (Notes)

Revenue Revenue (Notes)	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	(6) Revenue For details regarding the principal activities from which the Company generates its revenue, refer to “Note 1 – Description of Business and Summary of Significant Accounting Policies Presentation” in the Form 10-K. For more detailed information regarding reportable segments, refer to “Note 13 – Segments” in this Quarterly Report. The following represents the disaggregated revenue by reportable segments for the three months ended April 1, 2023: Three Months Ended April 1, 2023 (In thousands) Vitamin Shoppe Pet Supplies Plus Badcock American Freight Buddy ’ s Sylvan Consolidated Retail sales $ 320,597 $ 163,259 $ 132,256 $ 202,150 $ 724 $ 8 $ 818,994 Wholesale sales 782 151,982 — 5,050 — — 157,814 Total product revenue 321,379 315,241 132,256 207,200 724 8 976,808 Royalties and advertising fees 178 10,884 — 795 5,183 9,880 26,920 Financing revenue — — 498 9,927 — — 10,425 Interest income — 83 22,239 177 — — 22,499 Interest income from amortization of original purchase discount — — 8,236 — — — 8,236 Warranty and damage revenue — — 12,305 10,588 1,563 — 24,456 Other revenues 145 7,863 11,753 7,874 52 344 28,031 Total service revenue 323 18,830 55,031 29,361 6,798 10,224 120,567 Rental revenue, net — — — — 7,446 — 7,446 Total rental revenue — — — — 7,446 — 7,446 Total revenue $ 321,702 $ 334,071 $ 187,287 $ 236,561 $ 14,968 $ 10,232 $ 1,104,821 The following represents the disaggregated revenue by reportable segments for the three months ended March 26, 2022: Three Months Ended March 26, 2022 (In thousands) Vitamin Shoppe Pet Supplies Plus Badcock American Freight Buddy’s Sylvan Consolidated Retail sales $ 310,430 $ 162,549 $ 166,642 $ 211,513 $ 1,070 $ 11 $ 852,215 Wholesale sales 175 123,232 — 3,542 — — 126,949 Total product revenue 310,605 285,781 166,642 215,055 1,070 11 979,164 Royalties and advertising fees 134 9,062 — 548 4,824 9,509 24,077 Financing revenue — — — 8,175 — — 8,175 Interest income — 73 27,663 195 — — 27,931 Interest income from amortization of original purchase discount — — 37,606 — — — 37,606 Warranty and damage revenue — — 13,546 11,479 1,604 — 26,629 Other revenues 214 6,298 10,802 5,964 63 523 23,864 Total service revenue 348 15,433 89,617 26,361 6,491 10,032 148,282 Rental revenue, net — — — — 8,024 — 8,024 Total rental revenue — — — — 8,024 — 8,024 Total revenue $ 310,953 $ 301,214 $ 256,259 $ 241,416 $ 15,585 $ 10,043 $ 1,135,470 Contract Balances The following table provides information about receivables and contract liabilities (deferred revenue) from contracts with customers as of April 1, 2023 and December 31, 2022: (In thousands) April 1, 2023 December 31, 2022 Accounts receivable $ 115,977 $ 143,582 Notes receivable 14,477 14,988 Customer deposits $ 21,663 $ 20,816 Gift cards and loyalty programs 9,496 9,565 Deferred franchise fee revenue 23,642 22,175 Other deferred revenue 9,955 10,688 Total deferred revenue $ 64,756 $ 63,244 Deferred revenue consists of (1) amounts received for merchandise of which customers have not yet taken possession, (2) gift card or store credits outstanding, and (3) loyalty reward program credits which are primarily recognized within one year following the revenue deferral. Deferred franchise fee revenue is recognized over the term of the agreement, which is between five and twenty years. The amount of revenue recognized in the period that was included in the contract liability balance at the beginning of the period is immaterial to the condensed consolidated financial statements.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Overview For the three months ended April 1, 2023 and March 26, 2022, the Company had an effective tax rate of 6.2% and 23.0%, respectively. The changes in the effective tax rate compared to the prior year are due to a current year projected pre-tax loss compared to prior year pre-tax income and a current year non-cash goodwill impairment charge that is nondeductible for tax purposes. Tax Receivable Agreement On July 10, 2019, the Company entered into a tax receivable agreement (the “Tax Receivable Agreement”) with the then-existing non-controlling interest holders (the “Buddy’s Members”) that provides for the payment by the Company to the Buddy’s Members of 40% of the cash savings, if any, in federal, state and local taxes that the Company realizes or is deemed to realize as a result of any increases in tax basis of the assets of Franchise Group New Holdco, LLC (“New Holdco”) resulting from future redemptions or exchanges of New Holdco units. Payments will be made when such Tax Receivable Agreement related deductions actually reduce the Company’s income tax liability. No payments were made to the Buddy’s Members pursuant to the Tax Receivable Agreement during the three months ended April 1, 2023. Total amounts due under the Tax Receivable Agreement to the Buddy’s Members as of April 1, 2023 were $15.4 million, with $1.0 million in “Other current liabilities” and the remaining amount recorded in “Other non-current liabilities” in the accompanying Condensed Consolidated Balance Sheets. Pursuant to the Company’s election under Section 754 of the Internal Revenue Code (the “Code”), the Company has obtained an increase in its share of the tax basis in

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
Stockholders' Equity	Net Income (Loss) Per Share Diluted net income (loss) per share is computed using the weighted-average number of common stock and, if dilutive, the potential common stock outstanding during the period. Potential common stock consists of the incremental common stock issuable upon the exercise of stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the calculations of basic and diluted net income (loss) per share: Three Months Ended (In thousands, except for share and per share amounts) April 1, 2023 March 26, 2022 Net income (loss) attributable to Franchise Group $ (108,317) $ 12,317 Less: Preferred dividend declared (2,128) (2,128) Adjusted net income (loss) available to Common Stockholders $ (110,445) $ 10,189 Weighted-average common stock outstanding 35,002,174 40,307,412 Net dilutive effect of stock options and restricted stock — 800,381 Weighted-average diluted shares outstanding 35,002,174 41,107,793 Net income (loss) per share: Basic net income per share $ (3.16) $ 0.25 Diluted net income per share (3.16) 0.25

Stock Compensation Plans

Stock Compensation Plans	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Stock Compensation Plans	Stock Compensation Plans For a discussion of our stock-based compensation plans, refer to “Note 12 – Stock Compensation Plans” in the Form 10-K. Restricted Stock Units The Company has awarded service-based restricted stock units (the “RSUs”) to its non-employee directors, officers and certain employees. The Company recognizes expense based on the estimated fair value of the RSUs granted over the vesting period on a straight-line basis. The fair value of RSUs is determined using the Company’s closing stock price on the date of the grant. At April 1, 2023, unrecognized compensation costs related to the RSUs were $11.7 million. These costs are expected to be recognized through fiscal year 2024. The following table summarizes the status of the RSUs as of and changes during the three months ended April 1, 2023: Number of RSUs Weighted average fair value at grant date Balance as of December 31, 2022 273,302 $ 36.39 Granted 284,818 27.89 Vested (51,431) 28.23 Canceled (500) 42.41 Balance as of April 1, 2023 506,189 $ 32.43 Performance Restricted Stock Units The Company has awarded performance restricted stock units (the “PRSUs”) to its officers and certain employees. The Company recognizes expense based on the estimated fair value of the PRSUs granted over the vesting period on a straight-line basis. The fair value of PRSUs is determined using the Company’s closing stock price on the date of the grant. At April 1, 2023, unrecognized compensation costs related to the PRSUs were $5.9 million. These costs are expected to be recognized through fiscal year 2025. The following table summarizes the status of the PRSUs as of and changes during the three months ended April 1, 2023: Number of PRSUs Weighted average fair value at grant date Balance as of December 31, 2022 364,857 $ 32.92 Granted 217,088 33.79 Adjusted for performance results achieved (1) 154,904 24.84 Vested (282,256) 24.82 Canceled (500) 42.41 Balance as of April 1, 2023 454,093 $ 35.60 (1) Represents an adjustment for performance results achieved related to outstanding 2020 PRSU shares that reached 200% achievement in March 2023. Market-Based Performance Restricted Stock Units The Company has awarded market-based performance restricted stock units (the “MPRSUs”) to its officers and certain employees. The Company recognizes expense based on the estimated fair value of the MPRSUs granted over the vesting period on a straight-line basis. The fair value of MPRSUs is determined using a Monte Carlo simulation valuation model to calculate grant date fair value. Compensation expense is recognized over the requisite service period using the proportionate amount of the award’s fair value that has been earned through service to date. Under GAAP, compensation expense is not reversed if the award target is not achieved. At April 1, 2023, unrecognized compensation costs related to the MPRSUs were $8.0 million. These costs are expected to be recognized through fiscal year 2024. The following table summarizes the status of the MPRSUs as of and changes during the three months ended April 1, 2023: Number of MPRSUs Weighted average fair value at grant date Balance as of December 31, 2022 840,926 $ 21.77 Granted — — Vested — — Canceled (37,500) 19.97 Balance as of April 1, 2023 803,426 $ 21.86 Stock Options The Company has awarded stock options to its non-employee directors and officers. As of April 1, 2023, there were 239,564 stock options outstanding. During the three months ended April 1, 2023, there were no stock options granted, 15,000 stock options exercised, and no stock options forfeited. The weighted-average exercise price of stock options outstanding was $9.54 per share as of April 1, 2023. All outstanding stock options will expire in fiscal years 2023 and 2024. At April 1, 2023, there were zero non-vested stock options outstanding and there was no remaining unrecognized compensation cost related to vested stock options. The following table summarizes information about stock options outstanding and exercisable at April 1, 2023: Options Outstanding and Exercisable Range of exercise prices Number Weighted average exercise price Weighted average remaining contractual life (in years) $0.00 - $10.89 185,000 $ 8.80 0.7 $10.90 - $12.01 54,564 11.97 0.7 239,564 $ 9.54 Stock Compensation Expense The Company recorded $2.7 million and $5.4 million in stock-based compensation expense during the three months ended April 1, 2023 and March 26, 2022, respectively. Long-Term Incentive Plans The Company has long-term incentive plans at various operating companies which are recorded as liabilities. Upon vesting, the awards granted under these plans may be settled in cash or shares of the Company’s stock at the Company’s discretion. The total aggregate liability for these plans as of April 1, 2023 is $9.8 million, recorded in “Other non-current liabilities” on the Condensed Consolidated Balance Sheets. During the three months ended April 1, 2023, total expense recognized related to these plans was $1.8 million.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Apr. 01, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company considers any of its directors, executive officers or beneficial owners of more than 5% of its common stock, or any member of the immediate family of the foregoing persons, to be related parties. Messrs. Kahn and Laurence Brian Kahn and Vintage Capital Management, LLC and its affiliates (“Vintage”), in aggregate, held approximately 40.2% of the aggregate voting power of the Company through their ownership of common stock as of April 1, 2023. Brian Kahn and Andrew Laurence are principals of Vintage. Mr. Kahn is a member of the Board of Directors, President and Chief Executive Officer of the Company. Mr. Laurence is an Executive Vice President of the Company and served as a member of the Company’s Board of Directors until May 2021. Buddy’s Franchises. Mr. Kahn’s brother-in-law owns eight Buddy’s franchises. All transactions between the Company’s Buddy’s segment and Mr. Kahn’s brother-in-law are conducted on a basis consistent with other franchisees. Tax Receivable Agreement Refer to “Note 8 – Income Taxes” for detail regarding the amounts due under the Tax Receivable Agreement to the Buddy’s Members.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In the ordinary course of operations, the Company may become a party to legal proceedings. Based upon information currently available, management believes that such legal proceedings, individually or in the aggregate, will not have a material adverse effect on the Company’s business, financial condition, cash flows, or results of operations. The Company is party to claims and lawsuits that are considered to be ordinary, routine litigation incidental to the business, including claims and lawsuits concerning the fees charged to customers for various products and services, relationships with franchisees, intellectual property disputes, employment matters, and contract disputes. Although the Company cannot provide assurance that it will ultimately prevail in each instance, it believes the amount, if any, it will be required to pay in the discharge of liabilities or settlements in these claims will not have a material adverse impact on its consolidated results of operations, financial position, or cash flows. Guarantees The Company remains secondarily liable under various real estate leases that were assigned to franchisees who acquired Pet Supplies Plus or Vitamin Shoppe stores from the Company. In the event of the failure of an acquirer to pay lease payments, the Company could be obligated to pay the remaining lease payments which extend through 2033 and in aggregate are $30.3 million and $30.2 million as of April 1, 2023 and December 31, 2022, respectively. In certain cases, the Company could attempt to recover from the franchisees’ personal assets should the Company be required to pay remaining lease obligations. If the Company is required to make payments under any of these guarantees, the Company could seek to recover those amounts from the franchisees or in some cases their affiliates. The Company believes that payment under any of these guarantees is remote as of April 1, 2023.

Segments (Notes)

Segments (Notes)	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	(13) Segments The Company’s operations are conducted in six reportable business segments: Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy’s, and Sylvan. The Company defines its segments as those operations which results its chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Vitamin Shoppe segment is an omnichannel specialty retailer and wellness lifestyle company with the mission of providing customers with the most trusted products, guidance, and services to help them become their best selves, however they define it. The Vitamin Shoppe segment offers one of the largest varieties of products among vitamin, mineral and supplement retailers. The broad product offering enables the company to provide customers with a depth of selection of products that may not be readily available at other specialty retailers or mass merchants, such as discount stores, supermarkets, drug stores and wholesale clubs. The Vitamin Shoppe continues to focus on improving the customer experience through the roll-out of initiatives including increasing customer engagement and personalization, redesigning the omnichannel experience (including in stores as well as through the internet and mobile devices), growing private brands and improving the effectiveness of pricing and promotions. Vitamin Shoppe is headquartered in Secaucus, New Jersey. The Pet Supplies Plus segment is a leading omnichannel retail chain and franchisor of pet supplies and services. Pet Supplies Plus has a diversified revenue model comprised of Company-owned store revenue, franchise royalties and revenue generated by the wholesale distribution of products to its franchisees. Pet Supplies Plus offers a curated selection of premium brands, proprietary private labels and specialty products with retail price parity with online players. Additionally, Pet Supplies Plus offers grooming, pet wash and other services in most of its locations. The Pet Supplies Plus segment operates under the “Pet Supplies Plus” brand and is headquartered in Livonia, Michigan. The Badcock segment is a retailer of furniture, appliances, bedding, electronics, home office equipment, accessories and seasonal items in a showroom format. Additionally, Badcock offers multiple and flexible payment solutions and credit options through its consumer financing services. The Badcock segment operates under the “Badcock Home Furniture & More” brand and is headquartered in Mulberry, Florida. The American Freight segment is a retail chain offering in-store and online access to furniture, mattresses, new and out-of-box home appliances and home accessories at discount prices. American Freight buys direct from manufacturers and sells direct in warehouse-style stores. By cutting out the middleman and keeping its overhead costs low, American Freight can offer quality products at low prices. American Freight provides customers with multiple payment options providing access to high-quality products and brand name appliances that may otherwise remain aspirational to some of its customers. American Freight also serves as a liquidation channel for major appliance vendors. American Freight operates specialty distribution centers that test every out-of-box appliance before it is offered for sale to customers. Customers typically are covered by the original manufacturer’s warranty and are offered the opportunity to purchase a full suite of extended-service plans and services. The American Freight segment operates under the “American Freight” brand and is headquartered in Delaware, Ohio. The Buddy’s segment is a specialty retailer of high quality, name brand consumer electronic, residential furniture, appliances and household accessories through rent-to-own agreements. The rental transaction allows customers the opportunity to benefit from the use of high-quality products under flexible rental purchase agreements without long-term obligations. The Buddy’s segment operates under the “Buddy’s” brand and is headquartered in Orlando, Florida. The Sylvan segment is an established and growing franchisor of supplemental education for Pre-K-12 students and families. Sylvan addresses the full range of student needs with a broad variety of academic curriculums delivered in an omnichannel format. The Sylvan platform provides franchisees with the ability to provide a range of services, including on premises, virtually, at a satellite location, and in the home. Sylvan is headquartered in Hunt Valley, Maryland. Refer to “Note 6 – Revenue” for total revenues by segment. Operating income (loss) by segment were as follows: Three Months Ended (In thousands) April 1, 2023 March 26, 2022 Income (loss) from operations: Vitamin Shoppe $ 27,194 $ 35,354 Pet Supplies Plus 19,367 17,021 Badcock 14,742 70,230 American Freight (86,630) 11,213 Buddy’s 3,740 4,065 Sylvan 1,151 948 Total Segments (20,436) 138,831 Corporate (6,093) (8,465) Consolidated income (loss) from operations $ (26,529) $ 130,366 Total assets by segment were as follows: (In thousands) April 1, 2023 December 31, 2022 Total assets: Vitamin Shoppe $ 623,453 $ 625,543 Pet Supplies Plus 1,013,360 977,234 Badcock 748,927 789,727 American Freight 857,705 904,378 Buddy’s 134,692 135,192 Sylvan 86,856 90,361 Total Segments 3,464,993 3,522,435 Corporate 142,269 107,977 Consolidated total assets $ 3,607,262 $ 3,630,412

Receivables, Loans, Notes Recei

Receivables, Loans, Notes Receivable, and Others	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Accounts and Notes Receivable	Accounts and Notes Receivable Current and non-current receivables as of April 1, 2023 and December 31, 2022 are presented in the Condensed Consolidated Balance Sheets as follows: (In thousands) April 1, 2023 December 31, 2022 Trade accounts receivable $ 30,916 $ 40,165 Customer accounts receivable 26,266 56,639 Franchisee accounts receivable 58,795 46,778 Notes receivable 2,211 2,361 Income tax receivable 36,573 28,325 Allowance for credit losses (3,038) (4,106) Current receivables, net 151,723 170,162 Notes receivable, non-current 12,266 12,627 Allowance for credit losses, non-current (1,064) (892) Non-current receivables, net 11,202 11,735 Total receivables $ 162,925 $ 181,897 Allowance for Credit Losses The adequacy of the allowance for credit losses is assessed on a quarterly basis and adjusted as deemed necessary. Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for credit losses. Expected credit losses for trade and franchisee accounts receivable are immaterial. Notes receivable are due from the Company’s franchisees and are collateralized by the underlying franchise. The debtors’ ability to repay the notes is dependent upon both the performance of the franchisee’s industry as a whole and the individual franchise areas. Activity in the allowance for credit losses for trade, customer, and franchisee accounts receivable and notes receivable for the three months ended April 1, 2023 and March 26, 2022 were as follows: Three Months Ended (In thousands) April 1, 2023 March 26, 2022 Balance at beginning of period $ 4,998 $ 6,192 Cumulative effect of adopted accounting standards 654 — Provision for credit loss expense (benefit) (1,541) (669) Write-offs, net of recoveries (9) — Balance at end of period $ 4,102 $ 5,523 Past due amounts are primarily attributable to trade and franchisee accounts receivable that have been generated over the past year and are past due by 1-30 days. The delinquency distribution of accounts and notes receivable past due at April 1, 2023 were as follows: April 1, 2023 (In thousands) Past due Current Total receivables Accounts receivable $ 8,311 $ 107,666 $ 115,977 Notes receivable — 14,417 14,417 Total accounts and notes receivable $ 8,311 $ 122,083 $ 130,394 In order to monetize its customer credit receivables portfolio, the Company's Badcock Home Furniture & more (“Badcock”) segment sells beneficial interests in customer revolving lines of credit pursuant to securitization transactions. The Company securitized an additional $133.4 million of its customer credit receivables portfolio during the three months ended April 1, 2023. For additional details regarding these securitizations, refer to “Note 5 – Securitized Accounts Receivable” in the Form 10-K. When securitized receivables are delinquent for approximately one year, the estimated uncollectible amount from the customer is written off and the corresponding securitized accounts receivable is reduced. Financial instruments that could potentially subject the Company to concentrations of credit risk consist of accounts receivable with its customers. The Company manages such risk by managing the customer accounts receivable portfolio using delinquency as a key credit quality indicator. Management believes the allowance is adequate to cover the Company’s credit loss exposure. Due to their non-recourse nature, the Company will record a gain on extinguishment for any debt secured by uncollectible accounts receivable in the future when the debt meets the extinguishment requirements in accordance with ASC 470, “Debt”. Activity in the allowance for credit losses on securitized accounts for the three months ended April 1, 2023 and March 26, 2022 was as follows: Three Months Ended (In thousands) April 1, 2023 March 26, 2022 Balance at beginning of period $ 64,800 $ — Cumulative effect of adopted accounting standards 13,187 — Provision for credit loss expense 21,995 15,792 Write-offs, net of recoveries (19,416) (12,126) Balance at end of period $ 80,566 $ 3,666 Current amounts include receivables for customers who have made a payment in the past 30 days. Any customers who have not made a required payment within the last 30 days are considered past due. The following table presents the delinquency distribution of the carrying value of customer accounts receivable by year of origination as of April 1, 2023: Delinquency Bucket 2023 2022 2021 Prior Total (in thousands) Current $ 76,678 $ 167,866 $ 22,218 $ 5,649 $ 272,411 1-30 12,103 32,889 6,926 1,987 53,904 31-60 1,310 7,976 2,533 1,008 12,827 61-90 — 5,781 1,931 735 8,448 91+ — 41,224 28,222 11,532 80,977 Total $ 90,091 $ 255,735 $ 61,830 $ 20,910 $ 428,567 Servicing revenue, interest income and interest expense generated from securitized receivables for the three months ended April 1, 2023 and March 26, 2022 were as follows: (In thousands) April 1, 2023 March 26, 2022 Securitization servicing revenue $ 3,245 $ 2,652 Interest income from securitization 1 30,475 65,269 Interest expense, debt secured by accounts receivable (48,125) (65,299) 1 Includes interest income from Badcock customer receivables (refer to “Note 3 – Accounts and Notes Receivable”) and securitized receivables.

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Basis of Presentation	Unless otherwise stated, references to the “Company,” “we,“ “us,” and “our” in this Quarterly Report on Form 10-Q (this “Quarterly Report”) refer to Franchise Group, Inc. and its direct and indirect subsidiaries on a consolidated basis. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2022 that was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2023 (the “Form 10-K”). In the opinion of management, all adjustments (including those of a normal recurring nature) necessary for a fair presentation of such condensed consolidated financial statements in accordance with GAAP have been recorded. The December 31, 2022 balance sheet information was derived from the audited financial statements as of that date. Reclassifications
New Accounting Pronouncements, Policy	Recent Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which changes how companies measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard replaces the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost (which generally will result in the earlier recognition of allowances for losses) and requires companies to record allowances for available-for-sale debt securities, rather than reduce the carrying amount. In addition, companies will have to disclose significantly more information, including information used to track credit quality by year of origination, for most financing receivables. Effective January 1, 2023, the Company adopted ASU 2016-13 and applied a cumulative-effect adjustment to retained earnings. The Company has reviewed its entire portfolio of assets recognized on the balance sheet as of December 31, 2022 and identified customer receivables and securitized receivables as the materially impacted assets within the scope of ASC 326. Upon adoption of ASC 326 the Company recorded a net decrease to retained earnings of $10.0 million as of January 1, 2023. Prior period amounts were not adjusted and will continue to be reported under the previous accounting standards. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet as a result of the adoption of ASC 326 were as follows: Impact of Adoption of ASC 326 (In thousands) Balance at Adjustments due to ASC 326 Balance at Assets Current receivables, net $ 170,162 $ (654) $ 169,508 Current securitized receivables, net 292,913 (11,619) 281,294 Non-current securitized receivables, net 39,527 (1,568) 37,959 Deferred income taxes 38,528 3,863 42,391 Stockholders’ Equity Retained earnings $ 109,917 $ (9,978) $ 99,939

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying amount of goodwill for the three months ended April 1, 2023 are as follows: Vitamin Shoppe Pet Supplies Plus American Freight Buddy’s Sylvan Total Balance as of December 31, 2022 $ 1,277 $ 336,791 $ 300,829 $ 79,099 $ 19,406 $ 737,402 Acquisitions — 3,690 — — — 3,690 Goodwill impairment — — (75,000) — — (75,000) Disposals and purchase accounting adjustments — (2,626) — — — (2,626) Balance as of April 1, 2023 $ 1,277 $ 337,855 $ 225,829 $ 79,099 $ 19,406 $ 663,466
Schedule of the amortizable other intangible assets	Components of intangible assets as of April 1, 2023 and December 31, 2022 were as follows: April 1, 2023 (In thousands) Gross carrying amount Accumulated Net carrying amount Indefinite lived tradenames $ 222,703 $ — $ 222,703 Intangible assets: Franchise and dealer agreements $ 96,005 $ (16,218) $ 79,787 Customer contracts 42,528 (9,807) 32,721 Other intangible assets 2,374 (882) 1,492 Total intangible assets $ 140,907 $ (26,907) $ 114,000 December 31, 2022 (In thousands) Gross carrying amount Accumulated amortization Net carrying amount Indefinite lived tradenames $ 222,703 $ — $ 222,703 Intangible assets: Franchise and dealer agreements $ 96,005 $ (14,348) $ 81,657 Customer contracts 42,484 (8,878) 33,606 Other intangible assets 2,313 (777) 1,536 Total intangible assets $ 140,802 $ (24,003) $ 116,799

Long-Term Obligations (Tables)

Long-Term Obligations (Tables)	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Schedule of Debt	For details regarding the Company’s long-term debt obligations, refer to “Note 10 – Long-Term Obligations” in the Form 10-K. Long-term obligations at April 1, 2023 and December 31, 2022 were as follows: (In thousands) April 1, 2023 December 31, 2022 Term loans, net of debt issuance costs First lien term loan, due March 10, 2026 $ 1,064,470 $ 779,777 Second lien term loan, due September 10, 2026 289,993 289,435 Total term loans, net of debt issuance costs 1,354,463 1,069,212 ABL Revolver 23,500 295,000 Other long-term obligations 5,061 6,147 Finance lease liabilities 23,067 11,055 Total long-term obligations 1,406,091 1,381,414 Less current installments 11,771 6,935 Total long-term obligations, net $ 1,394,320 $ 1,374,479

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
Schedule of computation of basic and diluted net income (loss) per share	The following table sets forth the calculations of basic and diluted net income (loss) per share: Three Months Ended (In thousands, except for share and per share amounts) April 1, 2023 March 26, 2022 Net income (loss) attributable to Franchise Group $ (108,317) $ 12,317 Less: Preferred dividend declared (2,128) (2,128) Adjusted net income (loss) available to Common Stockholders $ (110,445) $ 10,189 Weighted-average common stock outstanding 35,002,174 40,307,412 Net dilutive effect of stock options and restricted stock — 800,381 Weighted-average diluted shares outstanding 35,002,174 41,107,793 Net income (loss) per share: Basic net income per share $ (3.16) $ 0.25 Diluted net income per share (3.16) 0.25

Stock Compensation Plans (Table

Stock Compensation Plans (Tables)	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table summarizes the status of the RSUs as of and changes during the three months ended April 1, 2023: Number of RSUs Weighted average fair value at grant date Balance as of December 31, 2022 273,302 $ 36.39 Granted 284,818 27.89 Vested (51,431) 28.23 Canceled (500) 42.41 Balance as of April 1, 2023 506,189 $ 32.43

Organization and Significant _3

Organization and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net	$ 151,723	$ 170,162
Deferred Income Taxes and Tax Credits		38,528
Retained earnings	(32,909)	109,917
Cumulative Effect, Period of Adoption, Adjustment
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net		(654)
Deferred Income Taxes and Tax Credits		3,863
Retained earnings		(9,978)
Cumulative Effect, Period of Adoption, Adjusted Balance
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net		169,508
Deferred Income Taxes and Tax Credits		42,391
Retained earnings		99,939
Asset-backed Securities, Securitized Loans and Receivables
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net		292,913
Accounts Receivable, after Allowance for Credit Loss, Noncurrent	38,437	39,527
Asset-backed Securities, Securitized Loans and Receivables | Cumulative Effect, Period of Adoption, Adjustment
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net		(11,619)
Accounts Receivable, after Allowance for Credit Loss, Noncurrent		(1,568)
Asset-backed Securities, Securitized Loans and Receivables | Cumulative Effect, Period of Adoption, Adjusted Balance
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net		281,294
Accounts Receivable, after Allowance for Credit Loss, Noncurrent		37,959
Current receivables, net
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net	$ 151,723	$ 170,162

Acquisitions (Details)

Acquisitions (Details) $ in Millions	Feb. 28, 2023 USD ($)
Business Combinations [Abstract]
Business Combination, Price of Acquisition, Expected	$ 3.7

Accounts and Notes Receivable -

Accounts and Notes Receivable - Schedule of Receivables (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 115,977	$ 143,582
Income taxes receivable	36,573	28,325
Accounts Receivable, Allowance for Credit Loss, Current	(3,038)	(4,106)
Total Receivables, Current, Net	151,723	170,162
Accounts Receivable, Allowance for Credit Loss, Noncurrent	(1,064)	(892)
Receivables, Net, Non-current	11,202	11,735
Receivables, Fair Value Disclosure	162,925	181,897
Receivables from franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	58,795	46,778
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	30,916	40,165
Receivables from customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	26,266	56,639
Other Noncurrent Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, non-current	12,266	12,627
Other Current Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivable with Imputed Interest, Face Amount	2,211	2,361
Notes Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Allowance for Credit Loss, Noncurrent	$ (1,064)	$ (892)

Accounts and Notes Receivable_2

Accounts and Notes Receivable - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022	Dec. 25, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	$ 115,977		$ 143,582
Receivables, Fair Value Disclosure	130,394
Accounts Receivable, Allowance for Credit Loss	3,038		4,106
Interest Income, Financing Receivable	30,475	$ 65,269
Securitization Revenue	3,245	2,652
Interest expense, financing receivable	(48,125)	(65,299)
Financial Asset, Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing	8,311
Other Current Assets | Current
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	122,083
Trade Accounts Receivable [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	30,916		40,165
Receivables, Fair Value Disclosure	115,977
Accounts Receivable, Allowance for Credit Loss	4,102	5,523	4,998	$ 6,192
Provision for Other Credit Losses	(1,541)	$ (669)
Accounts Receivable, Allowance for Credit Loss, Writeoff	(9)
Trade Accounts Receivable [Member] | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Allowance for Credit Loss			$ 654
Trade Accounts Receivable [Member] | Financial Asset, Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing	8,311
Trade Accounts Receivable [Member] | Current
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	107,666
Notes Receivable [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Receivables, Fair Value Disclosure	14,417
Notes Receivable [Member] | Financial Asset, Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing	0
Notes Receivable [Member] | Current
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	$ 14,417

Changes in the Carrying Amount

Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill, Acquired in Acquisition	$ 3,690
ERROR in label resolution.	140,907		$ 140,802
Finite-Lived Intangible Assets, Accumulated Amortization	(26,907)		(24,003)
Intangible Assets, Net (Excluding Goodwill)	114,000		116,799
Goodwill, Impairment Loss	75,000	$ 0	0
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
ERROR in label resolution.	96,005		96,005
Finite-Lived Intangible Assets, Accumulated Amortization			(14,348)
Intangible Assets, Net (Excluding Goodwill)			81,657
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
ERROR in label resolution.	42,528		42,484
Finite-Lived Intangible Assets, Accumulated Amortization	(9,807)		(8,878)
Intangible Assets, Net (Excluding Goodwill)	32,721		$ 33,606
Pet Supplies Plus
Finite-Lived Intangible Assets [Line Items]
Goodwill, Acquired in Acquisition	3,690
Goodwill, Impairment Loss	$ 0

Components of Intangible Assets

Components of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Amortizable other intangible assets:
Gross carrying amount	$ 140,907		$ 140,802
Accumulated amortization	(26,907)		(24,003)
Net carrying amount	114,000		116,799
Goodwill	663,466		737,402
Goodwill, Acquired in Acquisition	3,690
Goodwill, Impairment Loss	(75,000)	$ 0	0
Goodwill, Period Increase (Decrease)	(2,626)
American Freight [Member]
Amortizable other intangible assets:
Goodwill	225,829		300,829
Pet Supplies Plus
Amortizable other intangible assets:
Goodwill	337,855		336,791
Buddy's [Member]
Amortizable other intangible assets:
Goodwill	79,099		79,099
Sylvan Learning
Amortizable other intangible assets:
Goodwill	19,406		19,406
Trade Names [Member]
Amortizable other intangible assets:
Indefinite-Lived Trademarks	222,703		222,703
Franchise Agreements [Member]
Amortizable other intangible assets:
Accumulated amortization	(16,218)
Net carrying amount	79,787
Noncompete Agreements [Member]
Amortizable other intangible assets:
Gross carrying amount	96,005		96,005
Accumulated amortization			(14,348)
Net carrying amount			81,657
Reacquired rights
Amortizable other intangible assets:
Gross carrying amount	2,374		2,313
Accumulated amortization	(882)		(777)
Net carrying amount	1,492		1,536
Customer Contracts [Member]
Amortizable other intangible assets:
Gross carrying amount	42,528		42,484
Accumulated amortization	(9,807)		(8,878)
Net carrying amount	32,721		$ 33,606
American Freight [Member]
Amortizable other intangible assets:
Goodwill, Acquired in Acquisition	0
Goodwill, Impairment Loss	(75,000)
Goodwill, Period Increase (Decrease)	0
Pet Supplies Plus
Amortizable other intangible assets:
Goodwill, Acquired in Acquisition	3,690
Goodwill, Impairment Loss	0
Goodwill, Period Increase (Decrease)	(2,626)
Buddy's [Member]
Amortizable other intangible assets:
Goodwill, Acquired in Acquisition	0
Goodwill, Impairment Loss	0
Goodwill, Period Increase (Decrease)	0
Buddy's [Member]
Amortizable other intangible assets:
Goodwill, Acquired in Acquisition	0
Goodwill, Impairment Loss	0
Goodwill, Period Increase (Decrease)	0
Sylvan Learning
Amortizable other intangible assets:
Goodwill, Acquired in Acquisition	0
Goodwill, Impairment Loss	0
Sylvan
Amortizable other intangible assets:
Goodwill, Period Increase (Decrease)	$ 0

Revenue Revenue (Details)

Revenue Revenue (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Revenues	$ 1,104,821,000	$ 1,135,470,000
Interest income	22,499,000	27,931,000
Revenues:
Lease Income	7,446,000	8,024,000
Deferred Revenue	64,756,000		$ 63,244,000
Deferred Revenue, Noncurrent	9,955,000		10,688,000
Trade accounts receivable	115,977,000		143,582,000
Financing Receivable, before Allowance for Credit Loss	14,477,000		14,988,000
Interest income from amortization of original purchase discount	8,236,000	37,606,000
Vitamin Shoppe [Member]
Revenues	321,702,000	310,953,000
Revenues:
Lease Income	0	0
American Freight [Member]
Revenues	236,561,000	241,416,000
Interest income	177,000	195,000
Revenues:
Lease Income	0	0
Pet Supplies Plus
Revenues	334,071,000	301,214,000
Interest income	83,000	73,000
Revenues:
Lease Income	0	0
Buddy's [Member]
Revenues	14,968,000	15,585,000
Interest income	0	0
Revenues:
Lease Income	7,446,000	8,024,000
Sylvan
Revenues	10,232,000	10,043,000
Revenues:
Lease Income	0	0
Badcock
Revenues	187,287,000	256,259,000
Interest income	22,239,000	27,663,000
Revenues:
Lease Income	0	0
Retail [Member]
Revenues	818,994,000	852,215,000
Retail [Member] | Vitamin Shoppe [Member]
Revenues	320,597,000	310,430,000
Retail [Member] | American Freight [Member]
Revenues	202,150,000	211,513,000
Retail [Member] | Pet Supplies Plus
Revenues	163,259,000	162,549,000
Retail [Member] | Buddy's [Member]
Revenues	724,000	1,070,000
Retail [Member] | Sylvan
Revenues	8,000	11,000
Retail [Member] | Badcock
Revenues	132,256,000	166,642,000
Wholesale
Revenues	157,814,000	126,949,000
Wholesale | Vitamin Shoppe [Member]
Revenues	782,000	175,000
Wholesale | American Freight [Member]
Revenues	5,050,000	3,542,000
Wholesale | Pet Supplies Plus
Revenues	151,982,000	123,232,000
Wholesale | Buddy's [Member]
Revenues	0	0
Wholesale | Sylvan
Revenues	0	0
Wholesale | Badcock
Revenues	0	0
Product [Member]
Revenues	976,808,000	979,164,000
Product [Member] | Vitamin Shoppe [Member]
Revenues	321,379,000	310,605,000
Product [Member] | American Freight [Member]
Revenues	207,200,000	215,055,000
Product [Member] | Pet Supplies Plus
Revenues	315,241,000	285,781,000
Product [Member] | Buddy's [Member]
Revenues	724,000	1,070,000
Product [Member] | Sylvan
Revenues	8,000	11,000
Product [Member] | Badcock
Revenues	132,256,000	166,642,000
Royalties and Advertising [Member]
Revenues	26,920,000	24,077,000
Royalties and Advertising [Member] | Vitamin Shoppe [Member]
Revenues	178,000	134,000
Royalties and Advertising [Member] | American Freight [Member]
Revenues	795,000	548,000
Royalties and Advertising [Member] | Pet Supplies Plus
Revenues	10,884,000	9,062,000
Royalties and Advertising [Member] | Buddy's [Member]
Revenues	5,183,000	4,824,000
Royalties and Advertising [Member] | Sylvan
Revenues	9,880,000	9,509,000
Royalties and Advertising [Member] | Badcock
Revenues	0	0
Financial Service [Member]
Revenues	10,425,000	8,175,000
Financial Service [Member] | Vitamin Shoppe [Member]
Revenues	0	0
Interest income	0	0
Financial Service [Member] | American Freight [Member]
Revenues	9,927,000	8,175,000
Financial Service [Member] | Pet Supplies Plus
Revenues	0	0
Financial Service [Member] | Buddy's [Member]
Revenues	0	0
Financial Service [Member] | Sylvan
Revenues	0	0
Financial Service [Member] | Badcock
Revenues	498,000	0
Membership [Member]
Revenues	24,456,000	26,629,000
Membership [Member] | Vitamin Shoppe [Member]
Revenues	0	0
Membership [Member] | American Freight [Member]
Revenues	10,588,000	11,479,000
Membership [Member] | Pet Supplies Plus
Revenues	0	0
Membership [Member] | Buddy's [Member]
Revenues	1,563,000	1,604,000
Membership [Member] | Sylvan
Revenues	0	0
Membership [Member] | Badcock
Revenues	12,305,000	13,546,000
Service, Other [Member]
Revenues	28,031,000	23,864,000
Service, Other [Member] | Vitamin Shoppe [Member]
Revenues	145,000	214,000
Service, Other [Member] | American Freight [Member]
Revenues	7,874,000	5,964,000
Service, Other [Member] | Pet Supplies Plus
Revenues	7,863,000	6,298,000
Service, Other [Member] | Buddy's [Member]
Revenues	52,000	63,000
Service, Other [Member] | Sylvan
Revenues	344,000	523,000
Service, Other [Member] | Badcock
Revenues	11,753,000	10,802,000
Service [Member]
Revenues	120,567,000	148,282,000
Service [Member] | Vitamin Shoppe [Member]
Revenues	323,000	348,000
Service [Member] | American Freight [Member]
Revenues	29,361,000	26,361,000
Service [Member] | Pet Supplies Plus
Revenues	18,830,000	15,433,000
Service [Member] | Buddy's [Member]
Revenues	6,798,000	6,491,000
Service [Member] | Sylvan
Revenues	10,224,000	10,032,000
Service [Member] | Badcock
Revenues	55,031,000	89,617,000
Gift Cards And Loyalty Programs
Revenues:
Contract with Customer, Liability	9,496,000	9,565,000
Franchise Fees
Revenues:
Contract with Customer, Liability	23,642,000		$ 22,175,000
customer deposit
Revenues:
Contract with Customer, Liability	$ 21,663,000	$ 20,816,000

Revenue Revenue (Details 1)

Revenue Revenue (Details 1) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred Revenue	$ 64,756	$ 63,244

Revenue Revenue (Details 2)

Revenue Revenue (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Revenues	$ 1,104,821	$ 1,135,470
Lease Income	7,446	8,024
Interest income	22,499	27,931
Product [Member]
Revenues	976,808	979,164
Royalties and Advertising [Member]
Revenues	26,920	24,077
Financial Service [Member]
Revenues	10,425	8,175
Membership [Member]
Revenues	24,456	26,629
Service, Other [Member]
Revenues	28,031	23,864
Service [Member]
Revenues	120,567	148,282
Retail [Member]
Revenues	818,994	852,215
Wholesale
Revenues	157,814	126,949
Vitamin Shoppe [Member]
Revenues	321,702	310,953
Lease Income	0	0
Vitamin Shoppe [Member] | Product [Member]
Revenues	321,379	310,605
Vitamin Shoppe [Member] | Royalties and Advertising [Member]
Revenues	178	134
Vitamin Shoppe [Member] | Financial Service [Member]
Revenues	0	0
Interest income	0	0
Vitamin Shoppe [Member] | Membership [Member]
Revenues	0	0
Vitamin Shoppe [Member] | Service, Other [Member]
Revenues	145	214
Vitamin Shoppe [Member] | Service [Member]
Revenues	323	348
Vitamin Shoppe [Member] | Retail [Member]
Revenues	320,597	310,430
Vitamin Shoppe [Member] | Wholesale
Revenues	782	175
American Freight [Member]
Revenues	236,561	241,416
Lease Income	0	0
Interest income	177	195
American Freight [Member] | Product [Member]
Revenues	207,200	215,055
American Freight [Member] | Royalties and Advertising [Member]
Revenues	795	548
American Freight [Member] | Financial Service [Member]
Revenues	9,927	8,175
American Freight [Member] | Membership [Member]
Revenues	10,588	11,479
American Freight [Member] | Service, Other [Member]
Revenues	7,874	5,964
American Freight [Member] | Service [Member]
Revenues	29,361	26,361
American Freight [Member] | Retail [Member]
Revenues	202,150	211,513
American Freight [Member] | Wholesale
Revenues	5,050	3,542
Buddy's [Member]
Revenues	14,968	15,585
Lease Income	7,446	8,024
Interest income	0	0
Buddy's [Member] | Product [Member]
Revenues	724	1,070
Buddy's [Member] | Royalties and Advertising [Member]
Revenues	5,183	4,824
Buddy's [Member] | Financial Service [Member]
Revenues	0	0
Buddy's [Member] | Membership [Member]
Revenues	1,563	1,604
Buddy's [Member] | Service, Other [Member]
Revenues	52	63
Buddy's [Member] | Service [Member]
Revenues	6,798	6,491
Buddy's [Member] | Retail [Member]
Revenues	724	1,070
Buddy's [Member] | Wholesale
Revenues	0	0
Pet Supplies Plus
Revenues	334,071	301,214
Lease Income	0	0
Interest income	83	73
Pet Supplies Plus | Product [Member]
Revenues	315,241	285,781
Pet Supplies Plus | Royalties and Advertising [Member]
Revenues	10,884	9,062
Pet Supplies Plus | Financial Service [Member]
Revenues	0	0
Pet Supplies Plus | Membership [Member]
Revenues	0	0
Pet Supplies Plus | Service, Other [Member]
Revenues	7,863	6,298
Pet Supplies Plus | Service [Member]
Revenues	18,830	15,433
Pet Supplies Plus | Retail [Member]
Revenues	163,259	162,549
Pet Supplies Plus | Wholesale
Revenues	$ 151,982	$ 123,232

Long-Term Obligations (Details)

Long-Term Obligations (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Feb. 02, 2023	Dec. 31, 2022
Credit facility
Other Long-term Debt	$ 5,061		$ 6,147
Long-term Debt and Lease Obligation, Including Current Maturities	1,406,091		1,381,414
Current Installments of Long-Term Obligation	11,771		6,935
Long-term Debt, Excluding Current Maturities	1,394,320		1,374,479
Term loan
Credit facility
Total debt	1,354,463		1,069,212
Revolver
Credit facility
Total debt	23,500		295,000
Finance Lease Liability [Member]
Credit facility
Total debt	23,067		11,055
Line of Credit [Member]
Credit facility
Maximum borrowing capacity		$ 300,000
Senior Secured Notes, First Lien Credit Agreement | Term loan
Credit facility
Debt Instrument, Face Amount	1,064,470		779,777
Senior Lien | Term loan
Credit facility
Debt Instrument, Face Amount	$ 289,993		$ 289,435

Income Taxes (Details)

Income Taxes (Details) - USD ($)		3 Months Ended
	Jul. 10, 2019	Apr. 01, 2023	Mar. 26, 2022
Income Tax Disclosure [Abstract]
Tax Receivable Agreement, Payment to Non-controlling Holders	40%
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount		$ 0.062	$ 0.230
Tax Receivable Agreement [Member]
Income Tax Contingency [Line Items]
Deferred Tax Liabilities, Deferred Expense		15,400,000
Tax Receivable Agreement [Member] | Other Current Liabilities
Income Tax Contingency [Line Items]
Deferred Tax Liabilities, Deferred Expense		$ 1,000,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Stockholders' Equity
Net loss	$ (108,317)	$ 12,317
Dividends, Preferred Stock	(2,128)	(2,128)
Net Income (Loss) Available to Common Stockholders, Basic	$ (110,445)	$ 10,189
Weighted Average Number of Shares Outstanding, Basic	35,002,174	40,307,412
Weighted Average Number of Shares Outstanding, Diluted	35,002,174	41,107,793
Incremental Common Shares Attributable to Dilutive Effect of Options and Restricted Stock Units	0	800,381
Earnings Per Share, Basic	$ (3.16)	$ 0.25
Earnings Per Share, Diluted	$ (3.16)	$ 0.25
Common Class A [Member]
Stockholders' Equity
Net loss	$ (108,317)
Weighted Average Number of Shares Outstanding, Basic	35,002,174	40,307,412
Earnings Per Share, Basic	$ (3.16)	$ 0.25

Stock Compensation Plans (Detai

Stock Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Nonvested stock option activity, Weighted average exercise price
Employee Benefits and Share-Based Compensation	$ 2.7	$ 5.4
Restricted Stock Units
Nonvested stock option activity, Nonvested options
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Beginning Balance	273,302
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	284,818
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(51,431)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	(500)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	506,189
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 36.39
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	27.89
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	28.23
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	42.41
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 32.43
Performance Shares
Nonvested stock option activity, Nonvested options
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Beginning Balance	364,857
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	217,088
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(282,256)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	(500)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	454,093
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 32.92
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	33.79
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	24.82
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	42.41
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 35.60
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Other	154,904
Adjusted for performance results achieved	$ 24.84
Performance Shares | MegaGrant
Nonvested stock option activity, Nonvested options
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Beginning Balance	840,926
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	(37,500)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	803,426
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 21.77
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	19.97
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 21.86
Share-based Payment Arrangement, Option [Member]
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	239,564
Weighted average exercise price (in dollars per share)	$ 9.54
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range One [Member]
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	185,000
Weighted average exercise price (in dollars per share)	$ 8.80
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term	8 months 12 days
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range Two [Member]
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	54,564
Weighted average exercise price (in dollars per share)	$ 11.97
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term	8 months 12 days

Stock Compensation Plans (Det_2

Stock Compensation Plans (Details 2) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 01, 2023 USD ($) $ / shares shares
stock awards expense [Member] | Accounts Payable and Accrued Liabilities
Stock options outstanding and exercisable
Share-based Payment Arrangement, Expense | $	$ 1.8
Share-based Payment Arrangement, Option [Member]
Stock options outstanding and exercisable
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	239,564
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	(15,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.54
Outstanding at the beginning of the period (in shares)	0
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range One [Member]
Stock options outstanding and exercisable
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	185,000
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range two
Stock options outstanding and exercisable
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	54,564
Restricted Stock Units
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	$ 11.7
Restricted Stock Units | Accounts Payable and Accrued Liabilities
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	9.8
Performance Shares
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	5.9
MegaGrant
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	$ 8
Stock Option Plan
Stock options outstanding and exercisable
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	239,564
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0

Restricted Stock Units (Details

Restricted Stock Units (Details 3) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Restricted Stock Units
Restricted Cash and Cash Equivalents Items [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	284,818
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	506,189	273,302
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	$ 27.89
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	51,431
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 28.23
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	500
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	$ 42.41
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 32.43	$ 36.39
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 11.7
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	$ 27.89
Performance Shares
Restricted Cash and Cash Equivalents Items [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	217,088
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	454,093	364,857
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	$ 33.79
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	282,256
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 24.82
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	500
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	$ 42.41
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 35.60	$ 32.92
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 5.9
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	$ 33.79
Performance Shares | MegaGrant
Restricted Cash and Cash Equivalents Items [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	803,426	840,926
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	37,500
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	$ 19.97
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	21.86	$ 21.77
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted, Weighted Average Grant Date Fair Value	$ 0

Related Party Transactions (Det

Related Party Transactions (Details)	Jul. 10, 2019	Apr. 01, 2023
Related Party Transaction [Line Items]
Tax Receivable Agreement, Payment to Non-controlling Holders	40%
Vintage RTO, L.P. ownership [Member]
Related Party Transaction [Line Items]
aggregate voting power		40.20%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Apr. 01, 2023	Mar. 26, 2022
Commitments and Contingencies Disclosure [Abstract]
Net Amount at Risk by Product and Guarantee, Net Amount at Risk	$ 30.3	$ 30.2

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ (26,529)	$ 130,366
Goodwill	663,466		$ 737,402
Assets	3,607,262		3,630,412
Revenues	1,104,821	1,135,470
Vitamin Shoppe [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	27,194	35,354
Goodwill	1,277		1,277
Assets	623,453		625,543
Revenues	321,702	310,953
American Freight [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(86,630)	11,213
Goodwill	225,829		300,829
Assets	857,705		904,378
Revenues	236,561	241,416
Pet Supplies Plus
Segment Reporting Information [Line Items]
Operating Income (Loss)	19,367	17,021
Goodwill	337,855		336,791
Assets	1,013,360		977,234
Revenues	334,071	301,214
Buddy's [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	3,740	4,065
Goodwill	79,099		79,099
Assets	134,692		135,192
Revenues	14,968	15,585
Overhead [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(6,093)	(8,465)
Badcock
Segment Reporting Information [Line Items]
Operating Income (Loss)	14,742	70,230
Assets	748,927		789,727
Revenues	187,287	256,259
Sylvan Learning
Segment Reporting Information [Line Items]
Operating Income (Loss)	1,151	948
Goodwill	19,406		19,406
Assets	86,856		90,361
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(20,436)	$ 138,831
Assets	3,464,993		3,522,435
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Assets	$ 142,269		$ 107,977

Receivables, Loans, Notes Rec_2

Receivables, Loans, Notes Receivable, and Others (Details) - Asset Pledged as Collateral with Right	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Other Significant Noncash Transaction, Consideration Received	133.4
Financing Receivable, Allowance for Credit Loss [Line Items]
Other Significant Noncash Transaction, Consideration Received	133.4

Receivables, Loans, Notes Rec_3

Receivables, Loans, Notes Receivable, and Others - Schedule of Accounts Receivable By Origination (Details) $ in Thousands	Apr. 01, 2023 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	$ 90,091
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	255,735
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	61,830
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	20,910
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	428,567
Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	76,678
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	167,866
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	22,218
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	5,649
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	272,411
1 - 30
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	12,103
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	32,889
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	6,926
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,987
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	53,904
31-60
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,310
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	7,976
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	2,533
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,008
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	12,827
61-90
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	5,781
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	1,931
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	735
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	8,448
91+
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	0
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	41,224
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	28,222
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	11,532
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	$ 80,977

Receivables, Loans, Notes Rec_4

Receivables, Loans, Notes Receivable, and Others - Activity for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022	Dec. 31, 2022	Dec. 25, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Allowance for Credit Loss	$ 3,038		$ 4,106
Securitized accounts receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Allowance for Credit Loss	80,566	$ 3,666	64,800	$ 0
Provision for Other Credit Losses	21,995	15,792
Accounts Receivable, Allowance for Credit Loss, Writeoff	$ (19,416)	$ (12,126)
Securitized accounts receivable | Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Allowance for Credit Loss			$ 13,187