What was the interest expense on lease liabilities for Checkers for the year ended January 2, 2023?

According to Checkers's 2025 Franchise Disclosure Document, the interest expense on lease liabilities for the year ended January 2, 2023 (Predecessor) was $125. This figure represents the cost incurred by Checkers for the use of leased assets during that period. Lease liabilities typically arise from obligations to make lease payments for assets such as land, buildings, or equipment used in the operation of Checkers restaurants.

For a prospective Checkers franchisee, understanding the interest expense on lease liabilities is crucial because it reflects a portion of the overall cost of leasing property and equipment. This expense, along with other lease-related costs, impacts the franchisee's operating expenses and profitability. Franchisees should carefully evaluate lease terms and conditions, including interest rates, to assess the financial implications of leasing versus owning assets.

The FDD also provides additional context regarding Checkers's lease-related expenses, including finance lease costs, amortization of right-of-use assets, operating lease costs, and variable lease costs. Reviewing these figures can provide a more comprehensive understanding of Checkers's leasing strategy and its impact on the company's financial performance. Franchisees should consider how these costs might affect their own financial projections and business planning.

It's important to note that these figures are based on Checkers's financial statements and may not directly translate to the experience of an individual franchisee. Factors such as location, lease terms, and business performance can all influence a franchisee's actual lease expenses. Therefore, prospective franchisees should conduct their own due diligence and consult with financial advisors to assess the specific financial implications of leasing in their particular circumstances.