What was the amount of deferred franchise fees at the beginning of the period for Checkers as of December 30, 2024?

According to Checkers' 2025 Franchise Disclosure Document, the deferred franchise fees at the beginning of the period as of December 30, 2024, was $9,654. This figure represents the amount of franchise fees that Checkers had collected but not yet recognized as revenue on that date. These fees are typically associated with obligations Checkers still needs to fulfill, such as providing initial training or support to new franchisees.

Deferred franchise fees are a common accounting practice in franchising. The fees are initially recorded as a liability (deferred revenue) and then recognized as revenue over time as Checkers fulfills its obligations to the franchisee. This approach aligns revenue recognition with the delivery of services and benefits to the franchisee.

For a prospective Checkers franchisee, understanding the deferred franchise fees can provide insight into the financial relationship between the franchisee and franchisor. It reflects the franchisor's ongoing obligations and the portion of the initial fee that is tied to future services. Monitoring the changes in deferred revenue can also offer a glimpse into the company's growth and its ability to attract new franchisees.