What was the reported fair value of Checkers' operating right-of-use assets after the Out-of-Court Restructuring?

Based on the 2025 Checkers Franchise Disclosure Document, the company underwent an Out-of-Court Restructuring, which required the company to record its assets and liabilities at fair value as of the restructuring date. This accounting change means that the financial statements before and after June 16, 2023, are not directly comparable.

While the document mentions that assets and liabilities were recorded at fair value, it does not explicitly state the exact fair value of the operating right-of-use assets after the Out-of-Court Restructuring. The FDD does state that the estimated consideration transferred in connection with the Out-of-Court Restructuring is allocated to the assets acquired and liabilities assumed based on their fair values as of the date of the Out-of-Court Restructuring, including identifiable intangible assets. The determination of these fair values involves significant judgment and estimates, such as future cash flows and discount rates.

Prospective franchisees should note that the absence of a specific figure for the fair value of right-of-use assets in the provided excerpts suggests the need to request this information directly from Checkers. Understanding the valuation of these assets is crucial for assessing the financial health and stability of the company post-restructuring. Franchisees should inquire about the specific valuation methods used and the assumptions made in determining the fair values of these assets.