What was the balance of Checkers' goodwill at June 17, 2023?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| throu I | e 17, 2023 gh January , 2024 (ccessor) | Weighted Average Useful Life (Years) | |
|---|---|---|---|
| Balance at June 17, 2023 | S | 31,766 | 10 |
| Amortization | (1,729) | ||
| Balance at January 1, 2024 | S | 30,037 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the balance of goodwill as of June 17, 2023, was $31,766. This figure represents the value of intangible assets acquired through a business combination, such as brand reputation and customer relationships. Goodwill is an important asset on Checkers' balance sheet, reflecting the premium paid above the fair market value of tangible assets during an acquisition.
Goodwill is subject to amortization, meaning its value is gradually reduced over its useful life. The FDD states that the weighted average useful life for goodwill is 10 years. During the period from June 17, 2023, through January 1, 2024, Checkers recorded amortization expense of $1,729 related to goodwill.
As a result of this amortization, the balance of goodwill decreased from $31,766 on June 17, 2023, to $30,037 on January 1, 2024. Prospective franchisees should understand how goodwill is accounted for, as it can impact the company's financial performance and overall valuation. Monitoring changes in goodwill and related amortization expenses can provide insights into the long-term value and stability of the Checkers brand.