What was the amount of sublease income for Checkers for the period from January 3, 2023 through June 16, 2023?

According to Checkers's 2025 Franchise Disclosure Document, sublease rental income recorded for the period from January 3, 2023 through June 16, 2023 was $1.0 million. This income is associated with Checkers subleasing land and buildings related to the sale of certain company-operated restaurants. These subleases typically have terms of 10 to 15 years, with no option to purchase, and Checkers remains responsible for the original rent payments. The revenue from these subleases is recorded as "franchise fees and other income" on Checkers's consolidated statements of operations.

For a prospective Checkers franchisee, understanding the sublease income is important as it reflects how Checkers manages its real estate portfolio and generates revenue from properties it no longer directly operates. The fact that Checkers remains responsible for the original rent payments while subleasing the properties indicates a potential risk if sublessees fail to meet their obligations. This arrangement could impact Checkers's overall financial stability, which in turn could affect the support and resources available to franchisees.

It's also worth noting that the subleases generally obligate the sublessee to cover costs associated with property taxes, insurance, and maintenance, which are considered variable costs. This means that the sublease income Checkers receives can fluctuate based on these variable costs. Franchisees should consider the implications of Checkers's real estate strategy and its potential impact on the franchise system's financial health when evaluating the franchise opportunity.