What is the fair value of the Checkers tradenames acquired?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2,923) | | Net assets acquired | 66,053 | | Goodwill | $ 31,766 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The fair values of identifiable intangible assets acquired as of the restructuring date are as follows:
| | Acquisition Date Fair Value | Weighted Average Useful L
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the fair value of the tradenames acquired is $197,500. These tradenames have an indefinite useful life, meaning they are not amortized over a specific period.
In addition to the tradenames, the franchise agreements were valued at $1,400 with a weighted average useful life of 15 years. The total fair value of all intangible assets acquired amounts to $198,900.
For a prospective Checkers franchisee, understanding the valuation of these intangible assets is important as it reflects the financial structure of the company and the value placed on its brand and franchise system. The indefinite life assigned to the tradenames suggests that Checkers views its brand as a long-term, sustainable asset. The valuation methods used, such as the relief from royalty and income approach, involve significant judgment and estimates, highlighting the complexity in assessing the true value of these assets.