What was the finance lease cost for Checkers from June 17, 2023 through January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ministrative expenses" and "restaurant retirement costs" within the accompanying consolidated statement of operations.
(Tabular Dollars in Thousands, Except Share and per Share Data)
The following table provides quantitative information concerning the Company's leases under ASC 842, Leases.
| For the Periods | For the Year Ended |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the finance lease cost for the period from June 17, 2023, through January 1, 2024, was $1,201. This figure represents the expense associated with finance leases during that specific timeframe. Finance leases are essentially leases where the franchisee, in this case, Checkers, assumes most of the risks and rewards of ownership.
This cost is a component of the overall lease expenses that Checkers incurs. It's important to note that this is just one element of the total cost of leasing, which also includes amortization of right-of-use assets, interest expense on lease liabilities, operating lease costs, and variable lease costs. These different types of lease costs reflect the various ways Checkers utilizes leased properties and equipment.
For a prospective franchisee, understanding these finance lease costs is crucial. It provides insight into the financial obligations Checkers has regarding its leased assets. While this specific figure pertains to the period from June 17, 2023, through January 1, 2024, it gives an idea of the scale of these expenses. Franchisees should consider these costs when evaluating the overall financial health and stability of Checkers.