What was the gross balance for the 10-year amortization period for Checkers as of December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amortization | December 30, | January 1, | |
|---|---|---|---|
| Period | 2024 | 2024 | |
| Balance, gross 10 years | $31,767 | $ 31,767 | |
| Less: accumulated amortization | (4,895) | (1,730) | |
| Balance, net | $26,872 | $ 30,037 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the gross balance for the 10-year amortization period as of December 30, 2024, was $31,767. This figure represents the total unamortized cost of certain assets that Checkers is depreciating over a 10-year period. Amortization is the process of spreading out the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.
For a prospective Checkers franchisee, understanding this figure is important for assessing the overall financial health and accounting practices of the company. It provides insight into how Checkers manages its assets and reports its financial performance. The corresponding accumulated amortization, which reduces the net balance, reflects the amount of the asset's cost that has already been expensed over time.
It's worth noting that the net balance, after deducting accumulated amortization, was $26,872 as of December 30, 2024. This net balance represents the remaining value of the asset that will be amortized in future periods. Reviewing these figures over time can help a franchisee understand the rate at which Checkers is depreciating its assets and how this impacts its reported earnings.