What was the accumulated amortization for Checkers as of January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ected to be profitable.
NOTE 9 - GOODWILL AND INTANGIBLE ASSETS, NET
As discussed in Note 4. Business Combination, as part of the business combination, the Company recognized $31.8 million of goodwill. The changes in goodwill during the successor periods are as follows:
| (Successor) |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, as of January 1, 2024, the accumulated amortization was $1,730. This figure represents the total amount of amortization that has been recognized up to that date against the gross balance of $31,767. The net balance, which is the gross balance less accumulated amortization, was $30,037 as of the same date. Amortization is the systematic allocation of the cost of an intangible asset over its useful life. In this case, the amortization period is 10 years.
For a prospective Checkers franchisee, understanding accumulated amortization is crucial for assessing the financial health and stability of the franchise. It provides insight into how the value of Checkers' intangible assets, such as franchise agreements, are being recognized over time. A significant accumulated amortization could indicate that the value of these assets is decreasing, which might affect future profitability or resale value.
It's important to note that this figure pertains to a specific set of assets with a 10-year amortization period. Checkers also amortizes franchise agreements over 15 years (Successor) and 27 years (Predecessor). Additionally, capitalized software costs are amortized on a straight-line basis over their estimated useful life. Therefore, the $1,730 figure represents only a portion of Checkers' overall amortization activities. Franchisees should review the complete financial statements and notes for a comprehensive understanding of all amortization expenses and their impact on the company's financial position.