What kind of industry or economic trends does Checkers consider significant enough to potentially have a negative impact on their business?

According to Checkers' 2025 Franchise Disclosure Document, when evaluating potential impairment indicators for indefinite-lived intangible assets, Checkers considers "significant industry or economic trends that could have a negative impact on our business." This assessment is part of the process Checkers uses to determine if the carrying value of these assets, which include brand name intangibles, may not be recoverable.

This means that Checkers, like many franchise systems, recognizes that external factors can influence the value of its brand and overall business performance. For a prospective franchisee, this highlights the importance of understanding the broader economic and industry landscape. Factors such as changes in consumer preferences, increased competition, or economic downturns could all potentially impact a Checkers franchise's profitability and long-term value.

It is important for potential franchisees to research and understand these trends, both on a national and local level, before investing in a Checkers franchise. This due diligence can help them assess the potential risks and opportunities associated with the franchise and make informed decisions about their investment. Franchisees should also inquire about what support Checkers offers to help franchisees navigate challenging economic conditions.