Did the impairment tests performed by Checkers in 2022 and 2021 result in any impairment charges?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2022 and 2021, the Company performed impairment tests of the brands intangible assets by completing a quantitative assessment at the enterprise level which relied upon unobservable inputs (Level 3) as of September 12, 2022, and September 6, 2021, respectively. The impairment tests did not result in any necessary impairment charges and, therefore, no impairment charges were recognized in 2022 and 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the company performed impairment tests of its brand's intangible assets in 2022 and 2021. These tests were quantitative assessments conducted at the enterprise level, relying on unobservable inputs as of September 12, 2022, and September 6, 2021, respectively.
The FDD states that the impairment tests conducted by Checkers in 2022 and 2021 did not result in any impairment charges. Therefore, Checkers did not recognize any impairment charges during those years.
Prospective franchisees should note that while no impairment charges were recognized in 2021 and 2022, the company did recognize an impairment in the Predecessor period of 2023 due to the Out-of-Court Restructuring. This information is crucial for understanding the financial stability and asset valuation practices of Checkers.