What was the gross amount of Checkers' franchise agreements as of January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
-------|---------|--|--| | Tradenames | $ 197,500 | $ | 225,900 | | | | Finite-lived intangible assets, net | 1,349 | | 26,335 | | | | Intangible assets, net | $ 198,849 | $ | 252,235 | | |
Finite-lived intangible assets, net consisted of the following as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor):
| January 1, 2024 (Successor) | Januar | y 2, 2 | 023 (Predec | esso | or) |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, as of January 1, 2024, the gross amount of franchise agreements totaled $1,400 (in thousands). After accumulated amortization of $51 (in thousands), the net value was $1,349 (in thousands).
These figures represent the total value of franchise agreements that Checkers holds on its balance sheet. Franchise agreements are amortized over a period of 15 years (Successor) using the straight-line method. Amortization reflects the expense recognized each year as the value of the asset (franchise agreement) is used up.
It is important to note that these figures are part of Checkers' consolidated financial statements, which include both company-operated and franchised locations. The financial status of franchise agreements can be an important indicator of the overall health and stability of the Checkers franchise system.