What is the depreciation timeframe for buildings owned by Checkers, as reported in the financial statements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| \$ | 4,791 | \$ | 8,826 | \$ | 8,004 | | |
| | | | | | | | | | | |
(Tabular Dollars in Thousands, Except Share and per Share Data)
10. Property and Equipment, Net
Property and equipment, net consisted of the following as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor):
| Land | $ | 6,735 | $ | 4,207 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the buildings are depreciated over a period of 5 to 30 years. This information is derived from the consolidated financial statements included as Exhibit H.
This depreciation timeframe is a standard accounting practice that allows Checkers to allocate the cost of its buildings over their estimated useful lives. For a franchisee, understanding this depreciation schedule is important for assessing the long-term financial health and asset management strategies of the company. It also provides insight into how Checkers values its assets and manages its financial reporting.
The FDD includes consolidated balance sheets as of December 30, 2024 (Successor) and January 1, 2024 (Successor), which show the values of buildings and accumulated depreciation. Reviewing these figures in conjunction with the depreciation timeframe can give potential franchisees a clearer picture of the company's financial position and how its assets are being managed. Keep in mind that these figures pertain to corporate owned locations and may not directly reflect the financial performance or depreciation schedules applicable to franchised locations.