What is the estimated useful life range for equipment, furniture, and fixtures for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Land | $ | 5,922 | $ | 6,735 | |
|---|---|---|---|---|---|
| Leasehold and land improvements | 2,270 | 804 | 1-10 years | ||
| Buildings | 6,779 | 3,617 | 5-30 years | ||
| Equipment, furniture and fixtures | 22,181 | 19,689 | 3-10 years |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the estimated useful life for equipment, furniture, and fixtures is between 3 to 10 years. This means that Checkers uses this range to depreciate these assets on their balance sheet, using the straight-line method. Depreciation is an accounting method of allocating the cost of an asset over its useful life.
For a prospective franchisee, this information is relevant for understanding the financial statements of Checkers. It also provides insight into how long Checkers expects these assets to last before they need to be replaced. This can help franchisees plan for future capital expenditures, as they will eventually need to replace equipment, furniture, and fixtures as they wear out.
The FDD also mentions that leasehold improvements are depreciated over the lesser of their estimated useful lives (generally 10 years) or the remaining lease term. This is a common practice, as leasehold improvements become the property of the landlord at the end of the lease term. Furthermore, Checkers expenses maintenance and repairs as they are incurred.