What was the finance lease expense for Checkers for the period ending December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
s and restaurant retirement costs line items within the accompanying consolidated statement of operations.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The following table provides quantitative information concerning the Company's leases under ASC 842, Leases.
| (Successor) | (Predecessor) |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the finance lease expense for the period ending December 30, 2024, was $2,699. This figure represents the cost associated with Checkers's obligations for leased assets accounted for as finance leases during that specific period.
Finance leases, unlike operating leases, transfer substantially all the risks and rewards of ownership to the lessee (Checkers). This means Checkers essentially 'owns' the asset for the duration of the lease, and the expense reflects the depreciation of the asset and the interest on the lease liability.
For a prospective franchisee, understanding the finance lease expense is crucial because it impacts the overall profitability and financial health of Checkers. It's important to note that this expense is specific to Checkers as a whole and may not directly translate to the expenses a franchisee would incur. However, it provides insight into how Checkers manages its long-term assets and financial obligations. Franchisees should inquire about any potential lease obligations they might assume as part of their franchise agreement and how those obligations would be accounted for.