SEC Comment Letter for Franchise Group, Inc. (CIK 0001528930) — Jul 21, 2022
Franchise Group, Inc. (CIK 0001528930)
Date: July 21, 2022 · CIK: 0001528930 · Accession: 0000000000-22-007662
AI Filing Summary & Sentiment
File numbers found in text: 001-35588
Letter
United States securities and exchange commission logo July 21, 2022 Eric Seeton Chief Financial Officer Franchise Group, Inc. 109 Innovation Court, Suite J Delaware, OH 43015 Re:Franchise Group, Inc. Form 10-K for the year ended December 25, 2021 Filed on February 23, 2022 File No. 001-35588 Dear Mr. Seeton: We have limited our review of your filing to the financial statements and related disclosures and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure. Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response. After reviewing your response to these comments, we may have additional comments. Form 10-K for the year ended December 25, 2021 Note 2. Acquisitions, page 57 1.Please disclose a qualitative description of the factors that resulted in goodwill and the amount of goodwill that is expected to be deductible for tax purposes related to the Sylvan and Pet Supplies Plus acquisitions. See ASC 805-30-50-1(a) and ASC 805-30-50-1(d). Note 7. Revenue, page 68 2.Please revise to disclose in all future filings the amount of revenue recognized in the reported period that was included in the contract liability balance at the beginning of the period. Refer to ASC 606-10-50-8(b). In closing, we remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.
FirstName LastNameEric Seeton Comapany NameFranchise Group, Inc. July 21, 2022 Page 2 FirstName LastName Eric Seeton Franchise Group, Inc. July 21, 2022 Page 2 You may contact Ameen Hamady at 202-551-3891 or Kristi Marrone at 202-551- 3429 with any questions. Sincerely, Division of Corporation Finance Office of Real Estate & Construction
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United States securities and exchange commission logo
July 21, 2022
Eric Seeton
Chief Financial Officer
Franchise Group, Inc.
109 Innovation Court, Suite J
Delaware, OH 43015
Re:Franchise Group, Inc.
Form 10-K for the year ended December 25, 2021
Filed on February 23, 2022
File No. 001-35588
Dear Mr. Seeton:
We have limited our review of your filing to the financial statements and related
disclosures and have the following comments. In some of our comments, we may ask you to
provide us with information so we may better understand your disclosure.
Please respond to these comments within ten business days by providing the requested
information or advise us as soon as possible when you will respond. If you do not believe our
comments apply to your facts and circumstances, please tell us why in your response.
After reviewing your response to these comments, we may have additional comments.
Form 10-K for the year ended December 25, 2021
Note 2. Acquisitions, page 57
1.Please disclose a qualitative description of the factors that resulted in goodwill and the
amount of goodwill that is expected to be deductible for tax purposes related to the Sylvan
and Pet Supplies Plus acquisitions. See ASC 805-30-50-1(a) and ASC 805-30-50-1(d).
Note 7. Revenue, page 68
2.Please revise to disclose in all future filings the amount of revenue recognized in the
reported period that was included in the contract liability balance at the beginning of the
period. Refer to ASC 606-10-50-8(b).
In closing, we remind you that the company and its management are responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or
absence of action by the staff.
FirstName LastNameEric Seeton
Comapany NameFranchise Group, Inc.
July 21, 2022 Page 2
FirstName LastName
Eric Seeton
Franchise Group, Inc.
July 21, 2022
Page 2
You may contact Ameen Hamady at 202-551-3891 or Kristi Marrone at 202-551-
3429 with any questions.
Sincerely,
Division of Corporation Finance
Office of Real Estate & Construction