What were Checkers' prepaid expenses as of January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ain internal control-related matters that we identified during the audit.
Tampa, Florida April 1, 2025
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| 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 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 3,563 $ 2,650 Accrue
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the company's prepaid expenses as of January 1, 2024, were $5,308,000. The most significant component of this figure was prepaid insurance, which had a balance of $2,700,000 on that date.
Prepaid expenses are costs that Checkers has paid in advance for goods or services that it will receive in the future. Prepaid insurance represents insurance premiums paid in advance for coverage during a future period. These prepaid expenses are considered assets on the balance sheet because they represent future economic benefits for the company.
For a prospective Checkers franchisee, understanding the level and composition of prepaid expenses can provide insight into the company's financial management and risk mitigation strategies. Prepaid insurance, for example, indicates that Checkers is proactively managing its risk exposure through insurance coverage. Monitoring these figures over time can also reveal trends in Checkers' operational costs and financial health.