What is the reported total value of Checkers' intangible assets?

According to Checkers' 2025 Franchise Disclosure Document, the company's intangible assets are valued at $198,900. These assets include tradenames valued at $197,500, which have an indefinite useful life, and franchise agreements valued at $1,400, which have a weighted average useful life of 15 years.

Intangible assets, like tradenames, are not subject to amortization. Checkers conducts a quantitative impairment test by comparing the fair value of these assets with their carrying value. These assets are evaluated annually, or when circumstances suggest the carrying amount may not be recoverable, in accordance with accounting standards. The company can perform either a qualitative or quantitative assessment of impairment, and if the carrying value exceeds the fair value, an impairment loss is recognized.

The fair values of tradenames and franchise agreements are determined using the relief from royalty method and the income approach, respectively. A third-party valuation specialist prepares the valuation of intangible assets, incorporating significant unobservable inputs and requiring considerable judgment and estimates, including the amount and timing of future cash flows. This valuation process is crucial for Checkers to accurately represent its financial position and for potential franchisees to understand the value of the brand and agreements they are investing in.