Franchise (FRG) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jul. 01, 2023	Aug. 03, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 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		35,191,461
Entity Central Index Key	0001528930
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
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		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1,038,686	$ 1,094,998	$ 2,143,507	$ 2,230,467
Operating expenses:
Cost of Revenue	632,623	612,253	1,301,732	1,240,362
Selling, general, and administrative expenses	383,563	405,639	770,804	782,633
Goodwill, Impairment Loss	0	0	75,000	0
Total operating expenses	1,016,186	1,017,892	2,147,536	2,022,995
Loss from operations	22,500	77,106	(4,029)	207,472
Other income (expense):
Bargain purchase gain	6	3,581	6	3,514
Sale and Leaseback Transaction, Gain (Loss), Net	0	49,854	0	49,854
Foreign currency transaction gain	(3,783)	12,853	(5,617)	(9,122)
Interest expense	(83,364)	(88,839)	(170,493)	(181,167)
Income tax benefit	(13,845)	13,572	(21,020)	17,250
Comprehensive income (loss)	(50,796)	40,983	(159,113)	53,301
Other comprehensive income (loss)	0	0	0	0
Loss before income taxes	$ (64,641)	$ 54,555	$ (180,133)	$ 70,551
Net income (loss) per share:
Weighted Average Number of Shares Outstanding, Basic	35,177,146	40,356,299	35,089,660	40,331,855
Weighted Average Number of Shares Outstanding, Diluted	35,177,146	41,126,605	35,089,660	41,148,668
Earnings Per Share, Basic	$ (1.50)	$ 0.96	$ (4.66)	$ 1.22
Earnings Per Share, Diluted	$ (1.50)	$ 0.94	$ (4.66)	$ 1.19
Product [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 916,112	$ 952,009	$ 1,892,920	$ 1,931,173
Operating expenses:
Cost of Revenue	621,482	600,780	1,278,386	1,217,364
Service [Member]
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	115,501	135,648	236,069	283,929
Operating expenses:
Cost of Revenue	8,634	8,732	18,213	17,395
Rental
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	7,073	7,341	14,518	15,365
Operating expenses:
Cost of Revenue	$ 2,507	$ 2,741	$ 5,133	$ 5,603

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 106,264	$ 80,783
Receivables:
Total Receivables, Current, Net	256,003	170,162
Accounts Receivable from Securitization	191,826	292,913
Inventory, Net	746,753	736,841
Assets Held-for-sale, Not Part of Disposal Group, Current	7,633	8,528
Other current assets	28,238	27,272
Total current assets	1,336,717	1,316,499
Property, equipment, and software, net	238,922	223,718
Equity Securities, FV-NI, Noncurrent	5,977	11,587
Accounts and Financing Receivable, after Allowance for Credit Loss, Noncurrent	10,808	11,735
Goodwill	663,481	737,402
Operating Lease, Right-of-Use Asset	890,611	890,949
Indefinite-Lived Trade Names	222,703	222,703
Other intangible assets, net	111,432	116,799
Other assets	65,398	59,493
Total assets	3,571,861	3,630,412
Current liabilities:
Current installments of long-term obligations	13,192	6,935
Secured Debt, Current	341,144	340,021
Operating Lease, Liability, Current	179,250	179,519
Accounts payable and accrued expenses	407,543	376,895
Deferred revenue - current	34,827	40,541
Total current liabilities	975,956	943,911
Long-term Debt and Lease Obligation	729,870	720,474
Long-term Debt, Excluding Current Maturities	1,526,605	1,374,479
Secured Long-term Debt, Noncurrent	44,423	107,448
Other Liabilities, Noncurrent	69,576	62,720
Total liabilities	3,346,430	3,209,032
Equity:
Additional paid-in capital	310,654	311,069
Retained earnings	(85,620)	109,917
Total equity	225,431	421,380
Total liabilities and equity	3,571,861	3,630,412
Asset-backed Securities, Securitized Loans and Receivables
Receivables:
Total Receivables, Current, Net		292,913
Accounts Receivable, after Allowance for Credit Loss, Noncurrent	25,812	39,527
Current receivables, net
Receivables:
Total Receivables, Current, Net	256,003	170,162
Special voting preferred stock
Equity:
Preferred stock	45	45
Class A common stock
Equity:
Common stock	$ 352	$ 349

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jul. 01, 2023	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss	$ (8,204,000)	$ (4,106,000)
allowance for credit losses	(65,519,000)	(57,095,000)
Allowance for Credit Losses, Securitized Receivables, Noncurrent	(8,816,000)	(7,705,000)
Accounts Receivable, Allowance for Credit Loss, Noncurrent	(1,070,000)	(892,000)
Finite-Lived Intangible Assets, Accumulated Amortization	$ 29,734,000	$ 24,003,000
Common Stock, Shares Authorized	180,000,000	180,000,000
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	$ 352,000	$ 349,000
Common Stock [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	35,186,943
Common Stock, Shares, Outstanding	35,186,943

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders Equity Statement - USD ($) shares in Thousands	Total	Common Stock [Member]	Preferred Stock [Member]	Parent [Member]	Parent [Member] Cumulative Effect, Period of Adoption, Adjustment	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment
Shares, Outstanding, Beginning Balance at Dec. 25, 2021		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				53,301,000			53,301,000
Stock Issued During Period, Value, Stock Options Exercised				180,000		180,000
Stock Issued During Period, Shares, Acquisitions		47
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition				10,484,000		10,483,000
Dividends	$ (53,685,000)						(53,685,000)
Dividends, Preferred Stock, Cash				(4,257,000)			(4,257,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		15
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		$ 1,000
Equity, Attributable to Parent, Ending Balance at Jun. 25, 2022		$ 404,000	$ 45,000	768,854,000		486,059,000	282,346,000
Shares, Outstanding, Ending Balance at Jun. 25, 2022		40,359	4,541
Shares, Outstanding, Beginning Balance at Mar. 26, 2022		40,354	4,541
Equity, Attributable to Parent, Beginning Balance at Mar. 26, 2022		$ 404,000	$ 45,000	751,686,000		480,628,000	270,609,000
Net Income (Loss) Attributable to Parent				40,983,000			40,983,000
Stock Issued During Period, Shares, Acquisitions		5
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition				5,431,000		5,431,000
Dividends	(27,117,000)						(27,117,000)
Dividends, Preferred Stock, Cash				(2,129,000)			(2,129,000)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		$ 0
Equity, Attributable to Parent, Ending Balance at Jun. 25, 2022		$ 404,000	$ 45,000	768,854,000		486,059,000	282,346,000
Shares, Outstanding, Ending Balance at Jun. 25, 2022		40,359	4,541
Shares, Outstanding, Beginning Balance at Dec. 31, 2022		34,926	4,541
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2022	421,380,000	$ 349,000	$ 45,000	421,380,000		311,069,000	109,917,000
Net Income (Loss) Attributable to Parent				(159,113,000)			(159,113,000)
Stock Issued During Period, Value, Stock Options Exercised		$ 1,000		491,000		490,000
Stock Issued During Period, Shares, Acquisitions		213
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition				(903,000)		(905,000)
Dividends	(22,189,000)						(22,189,000)
Dividends, Preferred Stock, Cash				(4,257,000)			(4,257,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		48
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		$ 2,000
Equity, Attributable to Parent, Ending Balance at Jul. 01, 2023	225,431,000	$ 352,000	$ 45,000	225,431,000		310,654,000	(85,620,000)
Shares, Outstanding, Ending Balance at Jul. 01, 2023		35,187	4,541
Shares, Outstanding, Beginning Balance at Apr. 01, 2023		35,149	4,541
Equity, Attributable to Parent, Beginning Balance at Apr. 01, 2023		$ 351,000	$ 45,000	277,647,000	$ (9,978,000)	310,160,000	(32,909,000)	$ (9,978,000)
Net Income (Loss) Attributable to Parent				(50,796,000)			(50,796,000)
Stock Issued During Period, Value, Stock Options Exercised		$ 1,000		361,000		360,000
Stock Issued During Period, Shares, Acquisitions		5
Adjustment to APIC, Share-based Compensation, Requisite Service Period Recognition				134,000		134,000
Dividends	214,000						214,000
Dividends, Preferred Stock, Cash				(2,129,000)			(2,129,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		33
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		$ 0
Equity, Attributable to Parent, Ending Balance at Jul. 01, 2023	$ 225,431,000	$ 352,000	$ 45,000	$ 225,431,000		$ 310,654,000	$ (85,620,000)
Shares, Outstanding, Ending Balance at Jul. 01, 2023		35,187	4,541

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022
Operating Activities
Net loss	$ (159,113,000)	$ 53,301,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses for accounts receivable	45,743,000	56,840,000
Goodwill, Impairment Loss	75,000,000	0
Other Depreciation and Amortization	44,282,000	42,236,000
Amortization of Debt Issuance Costs	5,788,000	12,032,000
Amortization of Debt Discount (Premium)	48,630,000	59,618,000
Stock-based compensation expense	2,829,000	10,853,000
Change in fair value of investment	5,611,000	10,855,000
Gain (Loss) on Sale of Intangible and Other Assets	(42,000)	(55,883,000)
Gain (Loss) on Disposition of Other Assets	262,000	(2,182,000)
Changes in other assets and liabilities	(30,905,000)	(238,903,000)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	38,085,000	(51,233,000)
Investing Activities
Assets Acquired from Franchisees and Area Developers	(28,760,000)	(21,809,000)
Proceeds from Sale of Intangible Assets	3,379,000	240,558,000
Payments to Acquire Businesses, Net of Cash Acquired	(3,682,000)	(3,754,000)
Payments received on operating loans to franchisees		1,000,000
Net cash provided by (used in) investing activities	(29,063,000)	215,995,000
Financing Activities
Dividends paid	(49,806,000)	(54,665,000)
Proceeds from Long-term Lines of Credit	538,000,000	88,500,000
Repayments of Other Long-term Debt	(389,389,000)	(358,172,000)
Finance Lease, Principal Payments	(3,180,000)	(1,383,000)
Proceeds from Issuance of Secured Debt	133,398,000	130,556,000
Repayments of Secured Debt	(192,030,000)	(166,653,000)
Payment for debt issue costs	(17,393,000)	(431,000)
Payment, Tax Withholding, Share-based Payment Arrangement	(3,240,000)	(190,000)
Net cash provided by (used in) financing activities	16,360,000	(362,438,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	25,382,000	(197,676,000)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	106,632,000	95,038,000
Cash and Cash Equivalents, at Carrying Value, Ending Balance	106,264,000	95,038,000
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest of $4 and $3, respectively	4,048,000	17,842,000
Cash paid for taxes, net of refunds	67,075,000	42,013,000
Cash Paid for Interest on Secured Debt	43,414,000	48,506,000
Payments to Acquire Software	2,461,000	2,751,000
Capital Expenditures Incurred but Not yet Paid	14,147,000	0
Restricted Cash, Noncurrent	368,000	0
Restricted Cash and Cash Equivalents	$ 106,632,000	$ 95,038,000

Organization and Significant Ac

Organization and Significant Accounting Policies	3 Months Ended
	Jul. 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 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	6 Months Ended
	Jul. 01, 2023
Business Combinations [Abstract]
Acquisitions	(2) Acquisitions and Business Combinations On May 10, 2023, the Company announced that it has entered into a definitive agreement and plan of merger with Freedom VCM, Inc., a Delaware Corporation (“Parent”) and Freedom VCM Subco, Inc., a Delaware corporation and wholly owned subsidiary of Parent (the “Merger Agreement”), pursuant to which members of the senior management team of the Company led by Brian Kahn, the Company’s Chief Executive Officer (collectively with affiliates and related parties of the senior management team, the “Management Group”), have agreed to acquire approximately 64.0% of the Company’s issued and outstanding common stock that the Management Group does not presently own or control (the “Proposed Merger”). Under the terms of the Proposed Merger, the Company’s common stockholders, other than the Management Group, are entitled to receive $30.00 in cash for each share of the Company’s common stock they hold. On July 19, 2023, the Company announced a notice of redemption (the “Redemption”) for all outstanding shares of its 7.50% Series A Cumulative Perpetual Preferred Stock in connection with the Merger Agreement. The Company's preferred stock will be redeemed in cash at a redemption price equal to $25.00 per share plus any accrued and unpaid dividends. The Redemption is contingent upon the Company’s successful completion of the Proposed Merger and, in the event the Proposed Merger does not occur and the Merger Agreement is terminated in accordance with its terms, the notice of redemption will be deemed rescinded and the Redemption will not occur. The Proposed Merger is anticipated to close in the second half of 2023, subject to satisfaction or waiver of the closing conditions, including approval by regulatory authorities and the Company’s stockholders, including approval by a majority of the shares of common stock of the Company not owned or controlled by the Management Group. Upon completion of the Proposed Merger, the Company will become a private company and will no longer be publicly listed or traded on Nasdaq. Additional information about the Merger Agreement and the Proposed Merger is set forth in the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on July 14, 2023. Treatment of Company Equity Awards in Connection with Proposed Merger Treatment of Stock Options. At the effective time of the Proposed Merger (the “Effective Time”), any outstanding stock options will exercise and entitle the holder of such stock option to receive, without interest, an amount in cash equal to the product of multiplying (A) the number of shares of the Company’s common stock subject to such stock option as of immediately prior to the Effective Time and (B) the excess, if any, of the per share merger consideration over the exercise price per share of the Company’s common stock subject to such stock option. Treatment of RSUs. At the Effective Time, any outstanding RSU will vest and entitle the holder of such RSU to receive, without interest, an amount in cash equal to the product obtained by multiplying (A) the number of shares of the Company’s common stock subject to such RSU immediately prior to the Effective Time and (B) the per share merger consideration, therefore, stock-based compensation will cease at that time. Treatment of PRSUs. At the Effective Time, any outstanding PRSU will vest and entitle the holder of such PRSU to receive, without interest, an amount in cash equal to the product obtained by multiplying (A) the number of shares of the Company’s common stock subject to such PRSU immediately prior to the Effective Time and (B) the per share merger consideration, therefore, stock-based compensation will cease at that time. Treatment of MPRSUs. At the Effective Time, each outstanding MPRSU will, automatically and without any action on the part of the holder thereof, be cancelled for no consideration, payment or right to consideration or payment, therefore, stock-based compensation will cease at that time. 2019 Omnibus Incentive Plan. The Company expects to terminate the 2019 Omnibus Incentive Plan at the Effective Time of the Proposed Merger. 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	6 Months Ended
	Jul. 01, 2023
Receivables [Abstract]
Accounts and Notes Receivable	Accounts and Notes Receivable Current and non-current receivables as of July 1, 2023 and December 31, 2022 are presented in the Condensed Consolidated Balance Sheets as follows: (In thousands) July 1, 2023 December 31, 2022 Trade accounts receivable $ 33,924 $ 40,165 Customer accounts receivable 128,004 56,639 Franchisee accounts receivable 51,969 46,778 Notes and interest receivable 2,064 2,361 Income tax receivable 48,246 28,325 Allowance for credit losses (8,204) (4,106) Current receivables, net 256,003 170,162 Notes receivable, non-current 11,878 12,627 Allowance for credit losses, non-current (1,070) (892) Non-current receivables, net 10,808 11,735 Total receivables $ 266,811 $ 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 six months ended July 1, 2023 and June 25, 2022 were as follows: Six Months Ended (In thousands) July 1, 2023 June 25, 2022 Balance at beginning of period $ 4,998 $ 6,192 Cumulative effect of adopted accounting standards 654 — Provision for credit loss expense (benefit) 3,683 10,224 Write-offs, net of recoveries (61) (109) Balance at end of period $ 9,274 $ 16,307 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 July 1, 2023 were as follows: July 1, 2023 (In thousands) Past due Current Total receivables Accounts receivable $ 27,993 $ 185,904 $ 213,897 Notes and interest receivable — 13,942 13,942 Total accounts, notes and interest receivable $ 27,993 $ 199,846 $ 227,839 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 six months ended July 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 six months ended July 1, 2023 and June 25, 2022 was as follows: Six Months Ended (In thousands) July 1, 2023 June 25, 2022 Balance at beginning of period $ 64,800 $ — Cumulative effect of adopted accounting standards 13,187 — Provision for credit loss expense 42,036 46,560 Write-offs, net of recoveries (45,688) (32,293) Balance at end of period $ 74,335 $ 14,267 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 July 1, 2023: Delinquency Bucket 2023 2022 2021 Prior Total (in thousands) Current $ 55,147 $ 106,332 $ 12,030 $ 4,243 $ 177,752 1-30 6,740 19,626 3,752 1,298 31,416 31-60 2,376 7,626 2,369 951 13,322 61-90 1,580 5,899 2,069 812 10,360 91+ 2,314 43,742 18,929 7,303 72,288 Total $ 68,157 $ 183,225 $ 39,149 $ 14,607 $ 305,138 Servicing revenue, interest income and interest expense generated from securitized receivables for the six months ended July 1, 2023 and June 25, 2022 were as follows: Six Months Ended (In thousands) July 1, 2023 June 25, 2022 Securitization servicing revenue $ 6,291 $ 4,972 Interest income from securitization 1 56,986 114,156 Interest expense, debt secured by accounts receivable (88,144) (128,208) 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	6 Months Ended
	Jul. 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. A change in assumptions used in American Freight’s quantitative analysis (e.g. projected cash flows, discount rates and growth rates) could result in the reporting unit’s estimated fair value being less than the carrying value. If American Freight is unable to achieve its current financial forecast, the Company may be required to record an impairment charge in a future period related to its goodwill. As of July 1, 2023, American Freight’s goodwill totaled $225.8 million. Changes in the carrying amount of goodwill for the six months ended July 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 — (2,611) — — — (2,611) Balance as of July 1, 2023 $ 1,277 $ 337,870 $ 225,829 $ 79,099 $ 19,406 $ 663,481 Components of intangible assets as of July 1, 2023 and December 31, 2022 were as follows: July 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 $ (17,995) $ 78,010 Customer contracts 42,578 (10,752) 31,826 Other intangible assets 2,583 (987) 1,596 Total intangible assets $ 141,166 $ (29,734) $ 111,432 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
	Jul. 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 July 1, 2023: Three Months Ended July 1, 2023 (In thousands) Vitamin Shoppe Pet Supplies Plus Badcock American Freight Buddy ’ s Sylvan Consolidated Retail sales $ 303,809 $ 162,310 $ 123,450 $ 171,104 $ 565 $ 5 $ 761,243 Wholesale sales 611 150,293 — 3,965 — — 154,869 Total product revenue 304,420 312,603 123,450 175,069 565 5 916,112 Royalties and advertising fees 201 11,568 — 806 4,657 11,388 28,620 Financing revenue — — 659 11,511 — — 12,170 Interest income — 78 20,478 177 — — 20,733 Interest income from amortization of original purchase discount — — 6,032 — — — 6,032 Warranty and damage revenue — — 11,753 8,667 1,498 — 21,918 Other revenues 106 8,534 9,849 7,197 26 316 26,028 Total service revenue 307 20,180 48,771 28,358 6,181 11,704 115,501 Rental revenue, net — — — — 7,073 — 7,073 Total rental revenue — — — — 7,073 — 7,073 Total revenue $ 304,727 $ 332,783 $ 172,221 $ 203,427 $ 13,819 $ 11,709 $ 1,038,686 The following represents the disaggregated revenue by reportable segments for the six months ended July 1, 2023: Six Months Ended July 1, 2023 (In thousands) Vitamin Shoppe Pet Supplies Plus Badcock American Freight Buddy's Sylvan Consolidated Retail sales $ 624,406 $ 325,569 $ 255,706 $ 373,253 $ 1,289 $ 13 $ 1,580,236 Wholesale sales 1,393 302,275 — 9,016 — — 312,684 Total product revenue 625,799 627,844 255,706 382,269 1,289 13 1,892,920 Royalties and advertising fees 380 22,452 — 1,602 9,840 21,268 55,542 Financing revenue — — 1,157 21,438 — — 22,595 Interest income — 161 42,717 354 — — 43,232 Interest income from amortization of original purchase discount — — 14,269 — — — 14,269 Warranty and damage revenue — — 24,057 19,255 3,062 — 46,374 Other revenues 250 16,397 21,602 15,071 77 660 54,057 Total service revenue 630 39,010 103,802 57,720 12,979 21,928 236,069 Rental revenue, net — — — — 14,518 — 14,518 Total rental revenue — — — — 14,518 — 14,518 Total revenue $ 626,429 $ 666,854 $ 359,508 $ 439,989 $ 28,786 $ 21,941 $ 2,143,507 The following represents the disaggregated revenue by reportable segments for the three months ended June 25, 2022: Three Months Ended June 25, 2022 (In thousands) Vitamin Shoppe Pet Supplies Plus Badcock American Freight Buddy’s Sylvan Consolidated Retail sales $ 306,183 $ 151,421 $ 161,195 $ 194,789 $ 661 $ 13 $ 814,262 Wholesale sales 314 134,196 — 3,237 — — 137,747 Total product revenue 306,497 285,617 161,195 198,026 661 13 952,009 Royalties and advertising fees 207 9,395 — 516 4,603 10,668 25,389 Financing revenue — — — 10,860 — — 10,860 Interest income — 67 24,216 191 — — 24,474 Interest income from amortization of original purchase discount — — 24,671 — — — 24,671 Warranty and damage revenue — — 13,046 10,677 1,480 — 25,203 Other revenues 193 7,654 10,171 6,158 44 831 25,051 Total service revenue 400 17,116 72,104 28,402 6,127 11,499 135,648 Rental revenue, net — — — — 7,341 — 7,341 Total rental revenue — — — — 7,341 — 7,341 Total revenue $ 306,897 $ 302,733 $ 233,299 $ 226,428 $ 14,129 $ 11,512 $ 1,094,998 The following represents the disaggregated revenue by reportable segments for the six months ended June 25, 2022: Six Months Ended June 25, 2022 (In thousands) Vitamin Shoppe Pet Supplies Plus Badcock American Freight Buddy's Sylvan Consolidated Retail sales $ 616,614 $ 313,970 $ 327,837 $ 406,301 $ 1,731 $ 24 $ 1,666,477 Wholesale sales 488 257,428 — 6,780 — 264,696 Total product revenue 617,102 571,398 327,837 413,081 1,731 24 1,931,173 Royalties and other franchise based fees 341 18,457 — 1,064 9,427 20,177 49,466 Financing revenue — — — 19,034 — — 19,034 Interest income — 139 51,879 387 — — 52,405 Interest income from amortization of original purchase discount — — 62,277 — — — 62,277 Warranty and damage revenue — — 26,591 22,156 3,084 — 51,831 Other revenues 408 13,952 20,974 12,121 106 1,355 48,916 Total service revenue 749 32,548 161,721 54,762 12,617 21,532 283,929 Rental revenue, net — — — — 15,365 — 15,365 Total rental revenue — — — — 15,365 — 15,365 Total revenue $ 617,851 $ 603,946 $ 489,558 $ 467,843 $ 29,713 $ 21,556 $ 2,230,467 Contract Balances The following table provides information about receivables and contract liabilities (deferred revenue) from contracts with customers as of July 1, 2023 and December 31, 2022: (In thousands) July 1, 2023 December 31, 2022 Accounts receivable $ 213,897 $ 143,582 Notes receivable 13,739 14,988 Customer deposits $ 16,394 $ 20,816 Gift cards and loyalty programs 9,393 9,565 Deferred franchise fee revenue 24,010 22,175 Other deferred revenue 10,279 10,688 Total deferred revenue $ 60,076 $ 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
	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Overview For the three months ended July 1, 2023 and June 25, 2022, the Company had an effective tax rate of 21.4% and 24.9%, respectively. For the six months ended July 1, 2023 and June 25, 2022, the Company had an effective tax rate of 11.7% and 24.5%, 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 six months ended July 1, 2023. Total amounts due under the Tax Receivable Agreement to the Buddy’s Members as of July 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 Company has obtained an increase in its share of the tax basis in the net assets of

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Jul. 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 Six Months Ended (In thousands, except for share and per share amounts) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Net income (loss) attributable to Franchise Group $ (50,796) $ 40,983 $ (159,113) $ 53,301 Less: Preferred dividend declared (2,129) (2,129) (4,257) (4,257) Adjusted net income (loss) available to Common Stockholders $ (52,925) $ 38,854 $ (163,370) $ 49,044 Weighted-average common stock outstanding 35,177,146 40,356,299 35,089,660 40,331,855 Net dilutive effect of stock options and restricted stock — 770,306 — 816,813 Weighted-average diluted shares outstanding 35,177,146 41,126,605 35,089,660 41,148,668 Net income (loss) per share: Basic net income per share $ (1.50) $ 0.96 $ (4.66) $ 1.22 Diluted net income per share (1.50) 0.94 (4.66) 1.19

Stock Compensation Plans

Stock Compensation Plans	6 Months Ended
	Jul. 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 July 1, 2023, unrecognized compensation costs related to the RSUs were $6.8 million. These costs are expected to be recognized through fiscal year 2026. The following table summarizes the status of the RSUs as of and changes during the six months ended July 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 (55,751) 29.18 Canceled (130,919) 30.59 Balance as of July 1, 2023 371,450 $ 33.00 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 July 1, 2023, unrecognized compensation costs related to the PRSUs were $0.1 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 six months ended July 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 (86,475) 46.50 Balance as of July 1, 2023 368,118 $ 33.05 (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 July 1, 2023, unrecognized compensation costs related to the MPRSUs were $5.3 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 six months ended July 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 (125,500) 30.96 Balance as of July 1, 2023 715,426 $ 20.16 Stock Options The Company has awarded stock options to its non-employee directors and officers. As of July 1, 2023, there were 206,376 stock options outstanding. During the six months ended July 1, 2023, there were no stock options granted, 48,188 stock options exercised, and no stock options forfeited. The weighted-average exercise price of stock options outstanding was $9.32 per share as of July 1, 2023. All outstanding stock options will expire in fiscal years 2023 and 2024. At July 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 July 1, 2023: Options Outstanding and Exercisable Range of exercise prices Number Weighted average exercise price Weighted average remaining contractual life (in years) $0.00 - $10.39 175,000 $ 8.85 0.5 $10.40 - $11.97 17,487 11.93 1.2 $11.98 - $12.01 13,889 12.01 0.5 206,376 $ 9.32 Stock Compensation Expense The Company recorded $2.8 million and $10.9 million in stock-based compensation expense during the six months ended July 1, 2023 and June 25, 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 July 1, 2023 is $12.7 million, recorded in “Other non-current liabilities” on the Condensed Consolidated Balance Sheets. During the six months ended July 1, 2023, total expense recognized related to these plans was $4.4 million.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jul. 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 34.8% of the aggregate voting power of the Company through their ownership of common stock as of July 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. On May 10, 2023, the Company announced that it has entered into a definitive agreement and plan of merger with Freedom VCM, Inc., a Delaware corporation (“Parent”) and Freedom VCM Subco, Inc., a Delaware corporation and wholly owned subsidiary of Parent (the “Merger Agreement”), pursuant to which members of the senior management team of the Company led by Brian Kahn, the Company’s Chief Executive Officer (collectively with affiliates and related parties of the senior management team, the “Management Group”), have agreed to acquire approximately 64% of the Company’s issued and outstanding common stock that the Management Group does not presently own or control (the “Proposed Merger”). For more detailed information regarding the Merger Agreement and Proposed Merger, refer to “Note 2 – Acquisitions and Business Combinations” in this Quarterly Report. 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
	Jul. 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. Refer to “Note 14 – Subsequent Events” for detail regarding litigation related to the Proposed Merger. 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 $34.4 million and $30.2 million as of July 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 July 1, 2023.

Segments (Notes)

Segments (Notes)	3 Months Ended
	Jul. 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 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” and "Wag N' Wash" brands 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 and third-party 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 Six Months Ended (In thousands) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Income (loss) from operations: Vitamin Shoppe $ 28,651 $ 31,017 $ 55,846 $ 66,371 Pet Supplies Plus 17,589 18,654 36,955 35,675 Badcock 2,859 30,903 17,602 101,134 American Freight (21,890) 5,029 (108,519) 16,242 Buddy’s 2,894 3,561 6,633 7,626 Sylvan 1,823 1,633 2,974 2,581 Total Segments 31,926 90,797 11,491 229,629 Corporate (9,426) (13,691) (15,520) (22,157) Consolidated income (loss) from operations $ 22,500 $ 77,106 $ (4,029) $ 207,472 Total assets by segment were as follows: (In thousands) July 1, 2023 December 31, 2022 Total assets: Vitamin Shoppe $ 620,559 $ 625,543 Pet Supplies Plus 996,304 977,234 Badcock 730,969 789,727 American Freight 843,288 904,378 Buddy’s 133,091 135,192 Sylvan 87,282 90,361 Total Segments 3,411,493 3,522,435 Corporate 160,368 107,977 Consolidated total assets $ 3,571,861 $ 3,630,412

Subsequent Event Subsequent Eve

Subsequent Event Subsequent Events (Notes) - claims	2 Months Ended	6 Months Ended
	Jul. 13, 2023	Jul. 01, 2023
Subsequent Events [Abstract]
Subsequent Events [Text Block]		Subsequent Events Redemption of Preferred Stock On July 19, 2023, the Company issued a notice of redemption for all outstanding shares of its 7.50% Series A Cumulative Perpetual Preferred Stock (the “Preferred Stock”). The Company is redeeming the Preferred Stock in connection with the Proposed Merger and in accordance with the terms and conditions of the Merger Agreement. The Redemption is contingent upon the Company’s successful completion of the Proposed Merger and, in the event the Proposed Merger does not occur and the Merger Agreement is terminated in accordance with its terms, the notice of redemption will be deemed rescinded and the Redemption will not occur. The Preferred Stock will be redeemed in cash at a redemption price equal to $25.00 per share plus any accrued and unpaid dividends from the last dividend payment date, if any, up to but not including the Redemption Date (the “Redemption Price”). The Redemption Price is expected to be paid on August 18, 2023 or such later date as the parties to the Merger Agreement may agree, but in no event later than one business day following the Effective Time of the Proposed Merger (the “Redemption Date”). From and after the Redemption Date, dividends will cease to accrue on the Preferred Stock and the Preferred Stock will no longer be deemed outstanding and all rights of the holders of the Preferred Stock, other than the right to receive the Redemption Price upon Redemption, will cease and terminate. Upon Redemption, the Preferred Stock will be delisted from trading on the Nasdaq Global Market. Litigation Related to the Proposed Merger As disclosed in the definitive proxy statement filed by the Company with the SEC on July 14, 2023 (the “Definitive Proxy Statement”), between June 14, 2023 and July 13, 2023, the Company received from purported stockholders of the Company (i) five demand letters relating to the Proposed Merger and (ii) five demands pursuant to Section 220 of the General Corporation Law of the State of Delaware seeking certain books and records of the Company related to the Proposed Merger and related matters. Following the filing of the Definitive Proxy Statement, one lawsuit relating to the Proposed Merger was filed: John Pels v. Franchise Group, Inc., et al., Case 23 CVH 07 0508 (Ohio C.P., July 20, 2023), (the “Action”) and the Company received from purported Company stockholders (i) two additional Section 220 books and records demands (cumulatively with the Section 220 books and records demands disclosed in the Definitive Proxy Statement, the “220 Demands”) and (ii) nine additional demand letters relating to the Proposed Merger (cumulatively with the demand letters disclosed in the Definitive Proxy Statement, the “Demand Letters” and together with the 220 Demands and the Actions, the “Matters”). The Matters allege, among other things, that the defendants named therein violated Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 14a-9 promulgated thereunder because the preliminary proxy statement filed with the SEC in connection with the Proposed Merger or Definitive Proxy Statement allegedly omit or misstate certain material information, and/or were allegedly in breach of their obligations under state law and/or common law. The Action seeks, among other things, injunctive relief preventing the consummation of the Proposed Merger, rescission of the Proposed Merger if it is consummated, damages and attorneys’ fees. The Company believes that the claims asserted in the Matters are without merit and that no supplemental disclosure is required under applicable law. However, in order to moot unmeritorious disclosure claims, to avoid the risk of the Matters delaying or adversely affecting the Proposed Merger and to minimize the costs, risks and uncertainties inherent in litigation, without admitting any liability or wrongdoing, the Company determined to voluntarily supplement the Definitive Proxy Statement as described in the supplement to the Definitive Proxy Statement filed on August 8, 2023. This Action is not expected to affect the timing of the Company’s special meeting of stockholders to be held for the purpose of voting upon, among other things, the Proposed Merger, which is scheduled to be held on August 17, 2023, or the amount of the consideration to be paid to the Company’s stockholders in connection with the Proposed Merger.
Loss Contingency, Pending Claims, Number	1
Loss Contingency, Number of Plaintiffs	5
Demand Letters, pending, number	9
Books and Records Demands, Claims, Number	2

Receivables, Loans, Notes Recei

Receivables, Loans, Notes Receivable, and Others	6 Months Ended
	Jul. 01, 2023
Receivables [Abstract]
Accounts and Notes Receivable	Accounts and Notes Receivable Current and non-current receivables as of July 1, 2023 and December 31, 2022 are presented in the Condensed Consolidated Balance Sheets as follows: (In thousands) July 1, 2023 December 31, 2022 Trade accounts receivable $ 33,924 $ 40,165 Customer accounts receivable 128,004 56,639 Franchisee accounts receivable 51,969 46,778 Notes and interest receivable 2,064 2,361 Income tax receivable 48,246 28,325 Allowance for credit losses (8,204) (4,106) Current receivables, net 256,003 170,162 Notes receivable, non-current 11,878 12,627 Allowance for credit losses, non-current (1,070) (892) Non-current receivables, net 10,808 11,735 Total receivables $ 266,811 $ 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 six months ended July 1, 2023 and June 25, 2022 were as follows: Six Months Ended (In thousands) July 1, 2023 June 25, 2022 Balance at beginning of period $ 4,998 $ 6,192 Cumulative effect of adopted accounting standards 654 — Provision for credit loss expense (benefit) 3,683 10,224 Write-offs, net of recoveries (61) (109) Balance at end of period $ 9,274 $ 16,307 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 July 1, 2023 were as follows: July 1, 2023 (In thousands) Past due Current Total receivables Accounts receivable $ 27,993 $ 185,904 $ 213,897 Notes and interest receivable — 13,942 13,942 Total accounts, notes and interest receivable $ 27,993 $ 199,846 $ 227,839 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 six months ended July 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 six months ended July 1, 2023 and June 25, 2022 was as follows: Six Months Ended (In thousands) July 1, 2023 June 25, 2022 Balance at beginning of period $ 64,800 $ — Cumulative effect of adopted accounting standards 13,187 — Provision for credit loss expense 42,036 46,560 Write-offs, net of recoveries (45,688) (32,293) Balance at end of period $ 74,335 $ 14,267 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 July 1, 2023: Delinquency Bucket 2023 2022 2021 Prior Total (in thousands) Current $ 55,147 $ 106,332 $ 12,030 $ 4,243 $ 177,752 1-30 6,740 19,626 3,752 1,298 31,416 31-60 2,376 7,626 2,369 951 13,322 61-90 1,580 5,899 2,069 812 10,360 91+ 2,314 43,742 18,929 7,303 72,288 Total $ 68,157 $ 183,225 $ 39,149 $ 14,607 $ 305,138 Servicing revenue, interest income and interest expense generated from securitized receivables for the six months ended July 1, 2023 and June 25, 2022 were as follows: Six Months Ended (In thousands) July 1, 2023 June 25, 2022 Securitization servicing revenue $ 6,291 $ 4,972 Interest income from securitization 1 56,986 114,156 Interest expense, debt secured by accounts receivable (88,144) (128,208) 1 Includes interest income from Badcock customer receivables (refer to “Note 3 – Accounts and Notes Receivable”) and securitized receivables.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022
Pay vs Performance Disclosure
Net loss	$ (159,113)	$ 53,301

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jul. 01, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	3 Months Ended	6 Months Ended
	Jul. 01, 2023	Jul. 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 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)	6 Months Ended
	Jul. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying amount of goodwill for the six months ended July 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 — (2,611) — — — (2,611) Balance as of July 1, 2023 $ 1,277 $ 337,870 $ 225,829 $ 79,099 $ 19,406 $ 663,481
Schedule of the amortizable other intangible assets	Components of intangible assets as of July 1, 2023 and December 31, 2022 were as follows: July 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 $ (17,995) $ 78,010 Customer contracts 42,578 (10,752) 31,826 Other intangible assets 2,583 (987) 1,596 Total intangible assets $ 141,166 $ (29,734) $ 111,432 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)	6 Months Ended
	Jul. 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 July 1, 2023 and December 31, 2022 were as follows: (In thousands) July 1, 2023 December 31, 2022 Term loans, net of debt issuance costs First lien term loan, due March 10, 2026 $ 1,066,349 $ 779,777 Second lien term loan, due September 10, 2026 290,566 289,435 Total term loans, net of debt issuance costs 1,356,915 1,069,212 ABL Revolver 146,500 295,000 Other long-term obligations 4,007 6,147 Finance lease liabilities 32,375 11,055 Total long-term obligations 1,539,797 1,381,414 Less current installments 13,192 6,935 Total long-term obligations, net $ 1,526,605 $ 1,374,479

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jul. 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 Six Months Ended (In thousands, except for share and per share amounts) July 1, 2023 June 25, 2022 July 1, 2023 June 25, 2022 Net income (loss) attributable to Franchise Group $ (50,796) $ 40,983 $ (159,113) $ 53,301 Less: Preferred dividend declared (2,129) (2,129) (4,257) (4,257) Adjusted net income (loss) available to Common Stockholders $ (52,925) $ 38,854 $ (163,370) $ 49,044 Weighted-average common stock outstanding 35,177,146 40,356,299 35,089,660 40,331,855 Net dilutive effect of stock options and restricted stock — 770,306 — 816,813 Weighted-average diluted shares outstanding 35,177,146 41,126,605 35,089,660 41,148,668 Net income (loss) per share: Basic net income per share $ (1.50) $ 0.96 $ (4.66) $ 1.22 Diluted net income per share (1.50) 0.94 (4.66) 1.19

Stock Compensation Plans (Table

Stock Compensation Plans (Tables)	3 Months Ended
	Jul. 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 six months ended July 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 (55,751) 29.18 Canceled (130,919) 30.59 Balance as of July 1, 2023 371,450 $ 33.00

Organization and Significant _3

Organization and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Change in Accounting Estimate [Line Items]
Total Receivables, Current, Net	$ 256,003	$ 170,162
Deferred Income Taxes and Tax Credits		38,528
Retained earnings	(85,620)	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	25,812	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	$ 256,003	$ 170,162

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 28, 2023	Jul. 19, 2023	Jul. 01, 2023	May 10, 2023	Dec. 31, 2022
Business Combinations [Abstract]
Business Combination, Price of Acquisition, Expected	$ 3.7
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Preferred Stock, Par or Stated Value Per Share			$ 0.01		$ 0.01
Proposed Merger Agreement | Freedom VCM, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Common Stock, Par or Stated Value Per Share				$ 30
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage				64%
Proposed Merger Agreement | Series A Preferred Stock | Freedom VCM, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Preferred Stock, Par or Stated Value Per Share		$ 25

Accounts and Notes Receivable -

Accounts and Notes Receivable - Schedule of Receivables (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 213,897	$ 143,582
Income taxes receivable	48,246	28,325
Accounts Receivable, Allowance for Credit Loss, Current	(8,204)	(4,106)
Total Receivables, Current, Net	256,003	170,162
Accounts Receivable, Allowance for Credit Loss, Noncurrent	(1,070)	(892)
Receivables, Net, Non-current	10,808	11,735
Receivables	266,811	181,897
Receivables from franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	51,969	46,778
Trade Accounts Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	33,924	40,165
Receivables from customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	128,004	56,639
Other Noncurrent Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, non-current	11,878	12,627
Other Current Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivable with Imputed Interest, Face Amount	2,064	2,361
Notes Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Allowance for Credit Loss, Noncurrent	$ (1,070)	$ (892)

Accounts and Notes Receivable_2

Accounts and Notes Receivable - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Dec. 31, 2022	Dec. 25, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	$ 213,897		$ 143,582
Receivables, Fair Value Disclosure	227,839
Accounts Receivable, Allowance for Credit Loss	8,204		4,106
Interest Income, Financing Receivable	56,986	$ 114,156
Securitization Revenue	6,291	4,972
Interest expense, financing receivable	(88,144)	(128,208)
Financial Asset, Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Noncurrent, 90 Days or More Past Due, Still Accruing	27,993
Other Current Assets | Current
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	199,846
Trade Accounts Receivable [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	33,924		40,165
Receivables, Fair Value Disclosure	213,897
Accounts Receivable, Allowance for Credit Loss	9,274	16,307	4,998	$ 6,192
Provision for Other Credit Losses	3,683	10,224
Accounts Receivable, Allowance for Credit Loss, Writeoff	(61)	$ (109)
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	27,993
Trade Accounts Receivable [Member] | Current
Financing Receivable, Allowance for Credit Loss [Line Items]
Trade accounts receivable	185,904
Notes Receivable [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Receivables, Fair Value Disclosure	13,942
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	$ 13,942

Changes in the Carrying Amount

Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill, Acquired in Acquisition			$ 3,690
Goodwill, Impairment Loss	$ 0	$ 0	75,000	$ 0
Goodwill, Impaired, Accumulated Impairment Loss					$ 70,000
ERROR in label resolution.	141,166		141,166		140,802
Finite-Lived Intangible Assets, Accumulated Amortization	(29,734)		(29,734)		(24,003)
Intangible Assets, Net (Excluding Goodwill)	111,432		111,432		116,799
Goodwill, Impairment Loss	0	$ 0	75,000	$ 0
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
ERROR in label resolution.	96,005		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.	42,578		42,578		42,484
Finite-Lived Intangible Assets, Accumulated Amortization	(10,752)		(10,752)		(8,878)
Intangible Assets, Net (Excluding Goodwill)	$ 31,826		31,826		$ 33,606
Pet Supplies Plus
Finite-Lived Intangible Assets [Line Items]
Goodwill, Acquired in Acquisition			3,690
Goodwill, Impairment Loss			0
Goodwill, Impairment Loss			$ 0

Components of Intangible Assets

Components of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022	Dec. 31, 2022
Amortizable other intangible assets:
Gross carrying amount	$ 141,166		$ 141,166		$ 140,802
Accumulated amortization	(29,734)		(29,734)		(24,003)
Net carrying amount	111,432		111,432		116,799
Goodwill	663,481		663,481		737,402
Goodwill, Acquired in Acquisition			3,690
Goodwill, Impairment Loss	0	$ 0	(75,000)	$ 0
Goodwill, Period Increase (Decrease)			(2,611)
American Freight [Member]
Amortizable other intangible assets:
Goodwill	225,829		225,829		300,829
Pet Supplies Plus
Amortizable other intangible assets:
Goodwill	337,870		337,870		336,791
Buddy's [Member]
Amortizable other intangible assets:
Goodwill	79,099		79,099		79,099
Sylvan Learning
Amortizable other intangible assets:
Goodwill	19,406		19,406		19,406
Trade Names [Member]
Amortizable other intangible assets:
Indefinite-Lived Trademarks	222,703		222,703		222,703
Franchise Agreements [Member]
Amortizable other intangible assets:
Accumulated amortization	(17,995)		(17,995)
Net carrying amount	78,010		78,010
Noncompete Agreements [Member]
Amortizable other intangible assets:
Gross carrying amount	96,005		96,005		96,005
Accumulated amortization					(14,348)
Net carrying amount					81,657
Reacquired rights
Amortizable other intangible assets:
Gross carrying amount	2,583		2,583		2,313
Accumulated amortization	(987)		(987)		(777)
Net carrying amount	1,596		1,596		1,536
Customer Contracts [Member]
Amortizable other intangible assets:
Gross carrying amount	42,578		42,578		42,484
Accumulated amortization	(10,752)		(10,752)		(8,878)
Net carrying amount	$ 31,826		31,826		$ 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)			(2,611)
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 ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022	Dec. 31, 2022
Revenues	$ 1,038,686	$ 1,094,998	$ 2,143,507	$ 2,230,467
Interest income	20,733	24,474	43,232	52,405
Revenues:
Lease Income	7,073	7,341	14,518	15,365
Deferred Revenue	60,076		60,076		$ 63,244
Deferred Revenue, Noncurrent	10,279		10,279		10,688
Trade accounts receivable	213,897		213,897		143,582
Financing Receivable, before Allowance for Credit Loss	13,739		13,739		14,988
Interest income from amortization of original purchase discount	6,032	24,671	14,269	62,277
Vitamin Shoppe [Member]
Revenues	304,727	306,897	626,429	617,851
Revenues:
Lease Income	0	0	0	0
American Freight [Member]
Revenues	203,427	226,428	439,989	467,843
Interest income	177	191	354	387
Revenues:
Lease Income	0	0	0	0
Pet Supplies Plus
Revenues	332,783	302,733	666,854	603,946
Interest income	78	67	161	139
Revenues:
Lease Income	0	0	0	0
Buddy's [Member]
Revenues	13,819	14,129	28,786	29,713
Interest income	0	0	0	0
Revenues:
Lease Income	7,073	7,341	14,518	15,365
Sylvan
Revenues	11,709	11,512	21,941	21,556
Revenues:
Lease Income	0	0	0	0
Badcock
Revenues	172,221	233,299	359,508	489,558
Interest income	20,478	24,216	42,717	51,879
Revenues:
Lease Income	0	0	0	0
Retail [Member]
Revenues	761,243	814,262	1,580,236	1,666,477
Retail [Member] | Vitamin Shoppe [Member]
Revenues	303,809	306,183	624,406	616,614
Retail [Member] | American Freight [Member]
Revenues	171,104	194,789	373,253	406,301
Retail [Member] | Pet Supplies Plus
Revenues	162,310	151,421	325,569	313,970
Retail [Member] | Buddy's [Member]
Revenues	565	661	1,289	1,731
Retail [Member] | Sylvan
Revenues	5	13	13	24
Retail [Member] | Badcock
Revenues	123,450	161,195	255,706	327,837
Wholesale
Revenues	154,869	137,747	312,684	264,696
Wholesale | Vitamin Shoppe [Member]
Revenues	611	314	1,393	488
Wholesale | American Freight [Member]
Revenues	3,965	3,237	9,016	6,780
Wholesale | Pet Supplies Plus
Revenues	150,293	134,196	302,275	257,428
Wholesale | Buddy's [Member]
Revenues	0	0	0	0
Wholesale | Sylvan
Revenues	0	0	0
Wholesale | Badcock
Revenues	0	0	0	0
Product [Member]
Revenues	916,112	952,009	1,892,920	1,931,173
Product [Member] | Vitamin Shoppe [Member]
Revenues	304,420	306,497	625,799	617,102
Product [Member] | American Freight [Member]
Revenues	175,069	198,026	382,269	413,081
Product [Member] | Pet Supplies Plus
Revenues	312,603	285,617	627,844	571,398
Product [Member] | Buddy's [Member]
Revenues	565	661	1,289	1,731
Product [Member] | Sylvan
Revenues	5	13	13	24
Product [Member] | Badcock
Revenues	123,450	161,195	255,706	327,837
Royalties and Advertising [Member]
Revenues	28,620	25,389	55,542	49,466
Royalties and Advertising [Member] | Vitamin Shoppe [Member]
Revenues	201	207	380	341
Royalties and Advertising [Member] | American Freight [Member]
Revenues	806	516	1,602	1,064
Royalties and Advertising [Member] | Pet Supplies Plus
Revenues	11,568	9,395	22,452	18,457
Royalties and Advertising [Member] | Buddy's [Member]
Revenues	4,657	4,603	9,840	9,427
Royalties and Advertising [Member] | Sylvan
Revenues	11,388	10,668	21,268	20,177
Royalties and Advertising [Member] | Badcock
Revenues	0	0	0	0
Financial Service [Member]
Revenues	12,170	10,860	22,595	19,034
Financial Service [Member] | Vitamin Shoppe [Member]
Revenues	0	0	0	0
Interest income	0	0	0	0
Financial Service [Member] | American Freight [Member]
Revenues	11,511	10,860	21,438	19,034
Financial Service [Member] | Pet Supplies Plus
Revenues	0	0	0	0
Financial Service [Member] | Buddy's [Member]
Revenues	0	0	0	0
Financial Service [Member] | Sylvan
Revenues	0	0	0	0
Financial Service [Member] | Badcock
Revenues	659	0	1,157	0
Membership [Member]
Revenues	21,918	25,203	46,374	51,831
Membership [Member] | Vitamin Shoppe [Member]
Revenues	0	0	0	0
Membership [Member] | American Freight [Member]
Revenues	8,667	10,677	19,255	22,156
Membership [Member] | Pet Supplies Plus
Revenues	0	0	0	0
Membership [Member] | Buddy's [Member]
Revenues	1,498	1,480	3,062	3,084
Membership [Member] | Sylvan
Revenues	0	0	0	0
Membership [Member] | Badcock
Revenues	11,753	13,046	24,057	26,591
Service, Other [Member]
Revenues	26,028	25,051	54,057	48,916
Service, Other [Member] | Vitamin Shoppe [Member]
Revenues	106	193	250	408
Service, Other [Member] | American Freight [Member]
Revenues	7,197	6,158	15,071	12,121
Service, Other [Member] | Pet Supplies Plus
Revenues	8,534	7,654	16,397	13,952
Service, Other [Member] | Buddy's [Member]
Revenues	26	44	77	106
Service, Other [Member] | Sylvan
Revenues	316	831	660	1,355
Service, Other [Member] | Badcock
Revenues	9,849	10,171	21,602	20,974
Service [Member]
Revenues	115,501	135,648	236,069	283,929
Service [Member] | Vitamin Shoppe [Member]
Revenues	307	400	630	749
Service [Member] | American Freight [Member]
Revenues	28,358	28,402	57,720	54,762
Service [Member] | Pet Supplies Plus
Revenues	20,180	17,116	39,010	32,548
Service [Member] | Buddy's [Member]
Revenues	6,181	6,127	12,979	12,617
Service [Member] | Sylvan
Revenues	11,704	11,499	21,928	21,532
Service [Member] | Badcock
Revenues	48,771	72,104	103,802	161,721
Gift Cards And Loyalty Programs
Revenues:
Contract with Customer, Liability	9,393	9,565	9,393	9,565
Franchise Fees
Revenues:
Contract with Customer, Liability	24,010		24,010		$ 22,175
customer deposit
Revenues:
Contract with Customer, Liability	$ 16,394	$ 20,816	$ 16,394	$ 20,816

Revenue Revenue (Details 1)

Revenue Revenue (Details 1) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred Revenue	$ 60,076	$ 63,244

Revenue Revenue (Details 2)

Revenue Revenue (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Revenues	$ 1,038,686	$ 1,094,998	$ 2,143,507	$ 2,230,467
Lease Income	7,073	7,341	14,518	15,365
Interest income	20,733	24,474	43,232	52,405
Product [Member]
Revenues	916,112	952,009	1,892,920	1,931,173
Royalties and Advertising [Member]
Revenues	28,620	25,389	55,542	49,466
Financial Service [Member]
Revenues	12,170	10,860	22,595	19,034
Membership [Member]
Revenues	21,918	25,203	46,374	51,831
Service, Other [Member]
Revenues	26,028	25,051	54,057	48,916
Service [Member]
Revenues	115,501	135,648	236,069	283,929
Retail [Member]
Revenues	761,243	814,262	1,580,236	1,666,477
Wholesale
Revenues	154,869	137,747	312,684	264,696
Vitamin Shoppe [Member]
Revenues	304,727	306,897	626,429	617,851
Lease Income	0	0	0	0
Vitamin Shoppe [Member] | Product [Member]
Revenues	304,420	306,497	625,799	617,102
Vitamin Shoppe [Member] | Royalties and Advertising [Member]
Revenues	201	207	380	341
Vitamin Shoppe [Member] | Financial Service [Member]
Revenues	0	0	0	0
Interest income	0	0	0	0
Vitamin Shoppe [Member] | Membership [Member]
Revenues	0	0	0	0
Vitamin Shoppe [Member] | Service, Other [Member]
Revenues	106	193	250	408
Vitamin Shoppe [Member] | Service [Member]
Revenues	307	400	630	749
Vitamin Shoppe [Member] | Retail [Member]
Revenues	303,809	306,183	624,406	616,614
Vitamin Shoppe [Member] | Wholesale
Revenues	611	314	1,393	488
American Freight [Member]
Revenues	203,427	226,428	439,989	467,843
Lease Income	0	0	0	0
Interest income	177	191	354	387
American Freight [Member] | Product [Member]
Revenues	175,069	198,026	382,269	413,081
American Freight [Member] | Royalties and Advertising [Member]
Revenues	806	516	1,602	1,064
American Freight [Member] | Financial Service [Member]
Revenues	11,511	10,860	21,438	19,034
American Freight [Member] | Membership [Member]
Revenues	8,667	10,677	19,255	22,156
American Freight [Member] | Service, Other [Member]
Revenues	7,197	6,158	15,071	12,121
American Freight [Member] | Service [Member]
Revenues	28,358	28,402	57,720	54,762
American Freight [Member] | Retail [Member]
Revenues	171,104	194,789	373,253	406,301
American Freight [Member] | Wholesale
Revenues	3,965	3,237	9,016	6,780
Buddy's [Member]
Revenues	13,819	14,129	28,786	29,713
Lease Income	7,073	7,341	14,518	15,365
Interest income	0	0	0	0
Buddy's [Member] | Product [Member]
Revenues	565	661	1,289	1,731
Buddy's [Member] | Royalties and Advertising [Member]
Revenues	4,657	4,603	9,840	9,427
Buddy's [Member] | Financial Service [Member]
Revenues	0	0	0	0
Buddy's [Member] | Membership [Member]
Revenues	1,498	1,480	3,062	3,084
Buddy's [Member] | Service, Other [Member]
Revenues	26	44	77	106
Buddy's [Member] | Service [Member]
Revenues	6,181	6,127	12,979	12,617
Buddy's [Member] | Retail [Member]
Revenues	565	661	1,289	1,731
Buddy's [Member] | Wholesale
Revenues	0	0	0	0
Pet Supplies Plus
Revenues	332,783	302,733	666,854	603,946
Lease Income	0	0	0	0
Interest income	78	67	161	139
Pet Supplies Plus | Product [Member]
Revenues	312,603	285,617	627,844	571,398
Pet Supplies Plus | Royalties and Advertising [Member]
Revenues	11,568	9,395	22,452	18,457
Pet Supplies Plus | Financial Service [Member]
Revenues	0	0	0	0
Pet Supplies Plus | Membership [Member]
Revenues	0	0	0	0
Pet Supplies Plus | Service, Other [Member]
Revenues	8,534	7,654	16,397	13,952
Pet Supplies Plus | Service [Member]
Revenues	20,180	17,116	39,010	32,548
Pet Supplies Plus | Retail [Member]
Revenues	162,310	151,421	325,569	313,970
Pet Supplies Plus | Wholesale
Revenues	$ 150,293	$ 134,196	$ 302,275	$ 257,428

Long-Term Obligations (Details)

Long-Term Obligations (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Feb. 02, 2023	Dec. 31, 2022
Credit facility
Other Long-term Debt	$ 4,007		$ 6,147
Long-term Debt and Lease Obligation, Including Current Maturities	1,539,797		1,381,414
Current Installments of Long-Term Obligation	13,192		6,935
Long-term Debt, Excluding Current Maturities	1,526,605		1,374,479
Term loan
Credit facility
Total debt	1,356,915		1,069,212
Revolver
Credit facility
Total debt	146,500		295,000
Finance Lease Liability [Member]
Credit facility
Total debt	32,375		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	1,066,349		779,777
Senior Lien | Term loan
Credit facility
Debt Instrument, Face Amount	$ 290,566		$ 289,435

Income Taxes (Details)

Income Taxes (Details) - USD ($)		3 Months Ended
	Jul. 10, 2019	Jul. 01, 2023	Jun. 25, 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		$ 0.214	$ 0.249
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		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022
Stockholders' Equity
Net loss			$ (159,113)	$ 53,301
Dividends, Preferred Stock	$ (2,129)	$ (2,129)	(4,257)	(4,257)
Net Income (Loss) Available to Common Stockholders, Basic	$ (52,925)	$ 38,854	$ (163,370)	$ 49,044
Weighted Average Number of Shares Outstanding, Basic	35,177,146	40,356,299	35,089,660	40,331,855
Weighted Average Number of Shares Outstanding, Diluted	35,177,146	41,126,605	35,089,660	41,148,668
Incremental Common Shares Attributable to Dilutive Effect of Options and Restricted Stock Units	0	770,306	0	816,813
Earnings Per Share, Basic	$ (1.50)	$ 0.96	$ (4.66)	$ 1.22
Earnings Per Share, Diluted	$ (1.50)	$ 0.94	$ (4.66)	$ 1.19
Common Class A [Member]
Stockholders' Equity
Net loss	$ (50,796)	$ 40,983	$ (159,113)	$ 53,301
Weighted Average Number of Shares Outstanding, Basic	35,177,146	40,356,299	35,089,660	40,331,855
Earnings Per Share, Basic	$ (1.50)	$ 0.96	$ (4.66)	$ 1.22

Stock Compensation Plans (Detai

Stock Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023
Nonvested stock option activity, Weighted average exercise price
Employee Benefits and Share-Based Compensation		$ 10.9	$ 2.8
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			(55,751)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations			(130,919)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	371,450		371,450
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			29.18
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value			30.59
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 33		$ 33
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			(86,475)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	368,118		368,118
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			46.50
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 33.05		$ 33.05
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	(125,500)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number	715,426		715,426
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	30.96
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 20.16		$ 20.16
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	206,376		206,376
Weighted average exercise price (in dollars per share)	$ 9.32		$ 9.32
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	175,000		175,000
Weighted average exercise price (in dollars per share)	$ 8.85		$ 8.85
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term			6 months
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	17,487		17,487
Weighted average exercise price (in dollars per share)	$ 11.93		$ 11.93
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term			1 year 2 months 12 days
Share-based Payment Arrangement, Option [Member] | Exercise Price, Range Three
Nonvested stock option activity, Weighted average exercise price
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	13,889		13,889
Weighted average exercise price (in dollars per share)	$ 12.01		$ 12.01
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term			6 months

Stock Compensation Plans (Det_2

Stock Compensation Plans (Details 2) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jul. 01, 2023 USD ($) $ / shares shares	Jul. 01, 2023 USD ($) $ / shares shares
stock awards expense [Member] | Accounts Payable and Accrued Liabilities
Stock options outstanding and exercisable
Share-based Payment Arrangement, Expense | $	$ 4.4
Share-based Payment Arrangement, Option [Member]
Stock options outstanding and exercisable
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	206,376	206,376
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		(48,188)
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	$ 9.32	$ 9.32
Outstanding at the beginning of the period (in shares)	0	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	175,000	175,000
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	17,487	17,487
Restricted Stock Units
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	$ 6.8	$ 6.8
Restricted Stock Units | Accounts Payable and Accrued Liabilities
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	12.7	12.7
Performance Shares
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	0.1	0.1
MegaGrant
Stock options outstanding and exercisable
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	$ 5.3	$ 5.3
Stock Option Plan
Stock options outstanding and exercisable
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	206,376	206,376
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	6 Months Ended
	Jul. 01, 2023	Jul. 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	371,450	371,450	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		55,751
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value		$ 29.18
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations		130,919
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value		$ 30.59
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 33	$ 33	$ 36.39
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 6.8	$ 6.8
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	368,118	368,118	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		86,475
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value		$ 46.50
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	$ 33.05	$ 33.05	$ 32.92
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 0.1	$ 0.1
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	715,426	715,426	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	125,500
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations, Weighted Average Grant Date Fair Value	$ 30.96
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Weighted Average Grant Date Fair Value	20.16	$ 20.16	$ 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. 01, 2023
Vintage RTO, L.P. ownership [Member]
Related Party Transaction [Line Items]
aggregate voting power	34.80%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jul. 01, 2023	Jun. 25, 2022
Commitments and Contingencies Disclosure [Abstract]
Net Amount at Risk by Product and Guarantee, Net Amount at Risk	$ 34.4	$ 30.2

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Jul. 01, 2023	Jun. 25, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ 22,500	$ 77,106	$ (4,029)	$ 207,472
Goodwill	663,481		663,481		$ 737,402
Assets	3,571,861		3,571,861		3,630,412
Revenues	1,038,686	1,094,998	2,143,507	2,230,467
Vitamin Shoppe [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	28,651	31,017	55,846	66,371
Goodwill	1,277		1,277		1,277
Assets	620,559		620,559		625,543
Revenues	304,727	306,897	626,429	617,851
American Freight [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(21,890)	5,029	(108,519)	16,242
Goodwill	225,829		225,829		300,829
Assets	843,288		843,288		904,378
Revenues	203,427	226,428	439,989	467,843
Pet Supplies Plus
Segment Reporting Information [Line Items]
Operating Income (Loss)	17,589	18,654	36,955	35,675
Goodwill	337,870		337,870		336,791
Assets	996,304		996,304		977,234
Revenues	332,783	302,733	666,854	603,946
Buddy's [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	2,894	3,561	6,633	7,626
Goodwill	79,099		79,099		79,099
Assets	133,091		133,091		135,192
Revenues	13,819	14,129	28,786	29,713
Overhead [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(9,426)	(13,691)	(15,520)	(22,157)
Badcock
Segment Reporting Information [Line Items]
Operating Income (Loss)	2,859	30,903	17,602	101,134
Assets	730,969		730,969		789,727
Revenues	172,221	233,299	359,508	489,558
Sylvan Learning
Segment Reporting Information [Line Items]
Operating Income (Loss)	1,823	1,633	2,974	2,581
Goodwill	19,406		19,406		19,406
Assets	87,282		87,282		90,361
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	31,926	$ 90,797	11,491	$ 229,629
Assets	3,411,493		3,411,493		3,522,435
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Assets	$ 160,368		$ 160,368		$ 107,977

Receivables, Loans, Notes Rec_2

Receivables, Loans, Notes Receivable, and Others (Details) - Asset Pledged as Collateral with Right	6 Months Ended
	Jul. 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	Jul. 01, 2023 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	$ 68,157
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	183,225
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	39,149
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	14,607
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	305,138
Current
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	55,147
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	106,332
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	12,030
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	4,243
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	177,752
1 - 30
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	6,740
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	19,626
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	3,752
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	1,298
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	31,416
31-60
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	2,376
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	7,626
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	2,369
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	951
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	13,322
61-90
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	1,580
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	5,899
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	2,069
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	812
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	10,360
91+
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year	2,314
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year	43,742
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year	18,929
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year	7,303
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	$ 72,288

Receivables, Loans, Notes Rec_4

Receivables, Loans, Notes Receivable, and Others - Activity for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jun. 25, 2022	Dec. 31, 2022	Dec. 25, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Allowance for Credit Loss	$ 8,204		$ 4,106
Securitized accounts receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Allowance for Credit Loss	74,335	$ 14,267	64,800	$ 0
Provision for Other Credit Losses	42,036	46,560
Accounts Receivable, Allowance for Credit Loss, Writeoff	$ (45,688)	$ (32,293)
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

Uncategorized Items - frg-20230

Label	Element	Value
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 81,250,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 292,714,000