What was the net value of Checkers' tradenames as of January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
8 | 3,166 | | 2029 | 3,166 | | Thereafter | 11,042 | | Total | $ 26,872 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Intangible assets consisted of the following as of December 30, 2024 (Successor) and January 1, 2024 (Successor):
| (Successor) |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the net value of the company's tradenames as of January 1, 2024, was $197,500. This valuation is categorized as indefinite-lived.
It's important to note that these values are based on the Successor period following a Recapitalization Agreement. The fair values of the tradenames were determined using the relief from royalty method, and the valuation was prepared by a third-party specialist. This valuation incorporates significant unobservable inputs, requiring judgment and estimates, including the amount and timing of future cash flows.
For a prospective Checkers franchisee, understanding the valuation of the tradenames can provide insight into the brand's strength and market recognition. However, it's crucial to recognize that these figures are estimates and subject to change based on various market conditions and financial performance factors. Reviewing the complete audited financial statements and consulting with a financial advisor is recommended for a comprehensive understanding.