What is the acquisition date fair value of the tradenames for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2,923) | | Net assets acquired | 66,053 | | Goodwill | $ 31,766 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The fair values of identifiable intangible assets acquired as of the restructuring date are as follows:
| | Acquisition Date Fair Value | Weighted Average Useful L
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the acquisition date fair value of the tradenames is $197,500. The tradenames have an indefinite weighted average useful life.
In business acquisitions, assigning a fair value to intangible assets like tradenames is a common practice. This valuation reflects the brand recognition and market value associated with the Checkers name. The indefinite useful life indicates that Checkers does not anticipate the tradename losing its value in the foreseeable future, which can be a positive sign for potential franchisees.
For a prospective Checkers franchisee, this valuation highlights the established brand equity they are investing in. While the franchisee doesn't directly receive this cash amount, it underscores the importance of the Checkers brand in attracting customers and maintaining a competitive edge. The indefinite life suggests long-term brand relevance, which can contribute to the stability of the franchise.
It's important to note that this valuation was determined at a specific acquisition date, and the actual value of the tradenames may fluctuate over time due to market conditions and brand performance. However, the initial valuation provides a benchmark for understanding the financial significance of the Checkers brand.