---
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"
generated_at: "2026-06-22T08:57:18.826815+00:00"
event_type: "earnings"
sentiment: "negative"
materiality_score: 0.9
calibrated_materiality_score: 0.9
confidence: "high"
source: SEC EDGAR
---

# Franchise Group Reports Q3 2022 Net Loss of $121.2M, Restates Prior Cash Flows, Forms Home Furnishings Division

## Summary
- 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.

## SEC filing metadata
- accession: 0001171843-22-007084
- form_type: 8-K
- cik: 0001528930
- company_name: Franchise Group, Inc.
- filed_at: 2022-11-03T23:59:59+00:00
- event_type: earnings
- sentiment: negative
- materiality_score: 0.9
- calibrated_materiality_score: 0.9
- confidence: high
- sec_items: 2.02, 4.02, 9.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001171843-22-007084
- JSON: https://secwatch.observer/filing/0001171843-22-007084.json
- Plain text: https://secwatch.observer/filing/0001171843-22-007084.txt

## Key facts
- Auditor Changes
  Franchise Group, Inc. reported that prior financial statements should not be relied upon.
  - Action: non reliance
  - Auditor: Deloitte & Touche LLP
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1528930/000117184322007084/0001171843-22-007084-index.htm
- Earnings Releases
  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.
  - Period: third quarter ended September 24, 2022
  - Revenue: $1.1 billion
  - Net income: $121.2 million or $3.09 per fully diluted share
  - EPS: $0.59 per share
  - Result: reported results
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1528930/000117184322007084/0001171843-22-007084-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.