What is the reported total liabilities for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fair Value of stock consideration | $ | 97,819 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | 17,613 | |
| Accounts and notes receivable, net | 5,828 | |
| Inventory | 3,105 | |
| Prepaid expenses | 3,690 | |
| Other current assets | 1,600 | |
| Total current assets | 31,836 | |
| Property and equipment, net | 26,300 | |
| Operating Right-of-Use Assets | 152,445 | |
| Finance Right-of-Use Assets | 14,831 | |
| Intangible assets | 198,900 | |
| Favorable leasehold interests | 2,080 | |
| Other assets | 2,584 | |
| Total assets | 428,976 | |
| Current liabilities: | ||
| Accounts payable | $ | (3,126) |
| Accrued liabilities | (21,547) | |
| Accrued wages and benefits | (3,829) | |
| Current portion of deferred revenue | (2,761) | |
| Current maturities of long-term debt, and financing obligations | (923) | |
| Current portion of accrued self-insurance | (1,565) | |
| Current portion of Operating Lease Liabilities | (11,939) | |
| Current portion of Finance Lease Liabilities | (374) | |
| Total current liabilities | \ | (46,064) |
| Deferred income tax liabilities | (48,326) | |
| Operating Lease Liability | (158,850) | |
| Finance Lease Liability | (16,548) | |
| Long-term debt, less current maturities and deferred financing costs | (74,438) | |
| Financing obligations, less current maturities | (7,893) | |
| Deferred revenue, less current portion | (7,348) | |
| Accrued self-insurance, less current portion | (2,130) | |
| Unfavorable leasehold interests | (200) | |
| Long-term liabilities | (1,126) | |
| Total liabilities | (362,923) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the company's total liabilities are reported as $(362,923). This figure represents the sum of all financial obligations Checkers owes to external parties, including accounts payable, accrued liabilities, deferred income tax liabilities, lease liabilities, long-term debt, and other long-term obligations. It is important to note that this figure is presented as a negative number, which is standard accounting practice for representing liabilities. This indicates that Checkers's obligations exceed its assets by this amount.
For a prospective franchisee, understanding the franchisor's liabilities is crucial for assessing the financial health and stability of the company. A high level of liabilities compared to assets could indicate potential financial risks, which might affect Checkers's ability to support its franchisees or invest in the brand's future growth. It is essential to consider the context of these liabilities, such as the nature of the debt, the repayment schedule, and the company's ability to generate sufficient cash flow to meet its obligations.
When evaluating this information, potential franchisees should consult with a financial advisor to gain a comprehensive understanding of Checkers's financial condition and its potential impact on their investment. They should also compare Checkers's liabilities to those of other franchise systems in the quick-service restaurant industry to benchmark its financial health. Additionally, it is advisable to inquire about Checkers's plans for managing its debt and ensuring long-term financial stability.