What was the net value of Checkers' property and equipment as of December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| | December 30, January 1, 2024 2024 ASSETS Current assets Cash and cash equivalents $ 15,562 $ 12,557 Accounts and notes receivable, net 7,717 7,399 Inventory 2,428 2,178 Prepaid expenses 5,338 5,308 Other current assets 799 2,867 Total current assets 31,844 30,309 Property and equipment, net 31,679 29,309 Operating lease right-of-use assets 132,807 145,380 Finance lease right-of-use assets 31,231 22,632 Intangibles assets, net 198,723 198,849 Favorable leasehold interests 1,421 1,848 Goodwill, net 26,872 30,037 Other assets 1,203 2,353 Total assets $ 455,780 $ 460,717
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the net value of property and equipment as of December 30, 2024, was $31,679,000. This figure represents the depreciated value of all physical assets Checkers owns, such as buildings, equipment, and vehicles, after accounting for accumulated depreciation.
For a prospective franchisee, this number provides insight into the capital intensity of Checkers' operations. It reflects the level of investment Checkers has in its physical infrastructure. A higher value might suggest a more established or capital-intensive business model, while a lower value could indicate a leaner operation or a greater reliance on leased assets.
It's also worth noting that Checkers recorded impairment charges related to property and equipment of $1.9 million for the fiscal year ended December 30, 2024. These charges typically arise when the carrying amount of an asset exceeds its recoverable amount, often due to store closures or underperformance. This indicates that the company has recognized a reduction in the value of some of its assets, which could be a factor for potential franchisees to consider when assessing the overall financial health and stability of the company.