{"schema_version":"secwatch.filing_event.v1","accession":"0001171843-22-007084","form_type":"8-K","ticker":null,"cik":"0001528930","company_name":"Franchise Group, Inc.","filed_at":"2022-11-03T23:59:59+00:00","discovered_at":"2026-05-14T18:03:51.032736+00:00","generated_at":"2026-06-22T08:57:18.826815+00:00","sec_items":["2.02","4.02","9.01"],"event_type":"earnings","sentiment":"negative","materiality_score":0.9,"calibrated_materiality_score":0.9,"confidence":"high","headline":"Franchise Group Reports Q3 2022 Net Loss of $121.2M, Restates Prior Cash Flows, Forms Home Furnishings Division","bullets":["Total revenue $1.1B, net loss $121.2M, Adjusted EBITDA $73.1M, Non-GAAP EPS $0.59, including $70M goodwill impairment on American Freight.","Restating Q1 and Q2 FY2022 cash flow statements due to misclassified interest payments ($53M and $100.9M overstatements); material weakness in internal controls identified.","Creating Home Furnishings Division composed of American Freight, Buddy’s Home Furnishings, and W.S. Badcock, led by former At Home COO Peter Corsa.","Repurchased approximately 2.2 million shares of common stock for $77.9 million, reducing shares outstanding by over 5% to 38.2 million."],"urls":{"canonical":"https://secwatch.observer/filing/0001171843-22-007084","json":"https://secwatch.observer/filing/0001171843-22-007084.json","markdown":"https://secwatch.observer/filing/0001171843-22-007084.md","text":"https://secwatch.observer/filing/0001171843-22-007084.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1528930/000117184322007084/0001171843-22-007084-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1528930/000117184322007084/f8k_110322.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-22T08:57:18.826815+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"ebdff7f8e458d083b740b3ccb6a58e379f38aff0","claim":"Franchise Group, Inc. reported that prior financial statements should not be relied upon.","evidence_excerpt":"the consolidated statements of cash flows included in the Company's Quarterly Reports on Form 10-Q for the affected quarters, should no longer be relied upon and should be restated","evidence_source":"SEC 8-K Item 4.01/4.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1528930/000117184322007084/0001171843-22-007084-index.htm","confidence":0.9,"family_label":"Auditor Changes","details":[{"label":"Action","value":"non reliance"},{"label":"Auditor","value":"Deloitte & Touche LLP"}],"fact_type":"auditor_change"},{"claim_id":"71ee626b3a45201a773a39061529b930e49de69f","claim":"Franchise Group, Inc. reported third quarter ended September 24, 2022 results: revenue $1.1 billion, net income $121.2 million or $3.09 per fully diluted share, EPS $0.59 per share.","evidence_excerpt":"total reported revenue for Franchise Group was $1.1 billion, net loss from continuing operations was $121.2 million or $3.09 per fully diluted share, Adjusted EBITDA was $73.1 million and Non-GAAP EPS was $0.59 per share.","evidence_source":"SEC 8-K Item 2.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1528930/000117184322007084/0001171843-22-007084-index.htm","confidence":0.9,"family_label":"Earnings Releases","details":[{"label":"Period","value":"third quarter ended September 24, 2022"},{"label":"Revenue","value":"$1.1 billion"},{"label":"Net income","value":"$121.2 million or $3.09 per fully diluted share"},{"label":"EPS","value":"$0.59 per share"},{"label":"Result","value":"reported results"}],"fact_type":"earnings_release"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}