Where are fixed lease costs for operating lease payments included within Checkers' consolidated statement of operations?

According to Checkers' 2025 Franchise Disclosure Document, fixed lease costs for operating lease payments are recognized on a straight-line basis over the lease term. These costs are included within the consolidated statement of operations under the following line items: restaurant occupancy costs, franchise support and services expenses, general and administrative expenses, and restaurant retirement costs.

This means that as a Checkers franchisee, your fixed lease expenses, such as base rent, will be spread out evenly over the duration of your lease agreement for accounting purposes. These costs will not be reported as a single lump sum expense but rather as a consistent expense over time. This approach can help to provide a more stable view of your restaurant's financial performance.

It's important to note that the FDD also mentions that the leases generally obligate Checkers to pay for costs associated with property taxes, insurance, and maintenance. These costs are evaluated as either fixed or variable. If deemed fixed, they are included in the calculation of the lease liability, further impacting the line items mentioned above. Understanding how these different components of your lease are classified and accounted for is crucial for managing your restaurant's finances effectively.