What was the amortization of ROU assets for Checkers from June 17, 2023 through January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Net income | | - | | - | | 21,260 | | 21,260 | | | | Balances at December 30, 2024 | $ | - | $ | 98,449 | $ | 18,785 | $ | 117,234 | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Successor | Predecessor | ||||||
|---|---|---|---|---|---|---|---|
| Year Ended December 30, | 2024 | Period from June 17, 2023 through | January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | |||
| Operating activities: | |||||||
| Net income (loss) | $ | 21,260 | $ | (2,570) | (91,106) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 9,312 | 4,638 | 8,552 | 892 | |||
| Amortization of deferred financing costs | 294 | 54 | |||||
| Provision for credit losses | 582 | 122 | 94 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the company's right-of-use asset amortization for finance leases was $455,000 during the period from June 17, 2023, through January 1, 2024. Additionally, the depreciation and amortization was $4,638,000 for the same time frame.
It is important to note that Checkers classifies favorable and unfavorable leasehold interests for lease agreements where they are the lessee under Operating lease ROU assets. The amortization of ROU assets is recorded in restaurant occupancy costs for company-operated locations, franchise fees and other income for subleased locations, and general and administrative expenses for the company headquarters.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and stability of Checkers. Amortization of ROU assets reflects the expense recognized over time for the use of leased properties, which can significantly impact profitability. Franchisees should carefully review these figures in conjunction with other financial data to evaluate the overall financial performance of Checkers.