Over what period are Checkers franchise agreements amortized as definite-lived intangible assets?

According to Checkers' 2025 Franchise Disclosure Document, franchise agreements are considered definite-lived intangible assets and are amortized on a straight-line basis over their estimated useful lives. The amortization period for franchise agreements is 15 years. This means that the initial cost of the franchise agreement is spread out evenly over a 15-year period for accounting purposes.

This amortization approach impacts Checkers' financial statements by recognizing a portion of the franchise agreement's cost as an expense each year, rather than recognizing the entire cost upfront. This can affect the company's reported profits and losses over the term of the agreement. The FDD also mentions that Checkers assesses these definite-lived intangibles for impairment on an annual basis or when events or conditions suggest that the asset may not be recoverable.

For a prospective Checkers franchisee, understanding the amortization of franchise agreements is crucial for assessing the long-term financial implications of the franchise. It's also important to note that the company assesses definite-lived intangibles for impairment on an annual basis, or upon the existence of events or conditions which indicate that the asset may not be recoverable. This could impact the value of the franchise agreement as an asset.