What was the reported value of Checkers' net intangible assets in the most recent year presented?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| 2024 | 2024 | |
|---|---|---|
| Tradenames, indefinite-lived | $197,500 | $197,500 |
| Definite-lived intangible assets, net | 1,223 | 1,349 |
| Intangible assets. net | $198,723 | $198,849 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the reported value of intangible assets, net, for the most recent year, 2024, was $198,723. This figure is part of the broader balance sheet detailing Checkers' assets. The previous year, also 2024, the intangible assets, net, were valued at $198,849.
Intangible assets typically include items like trademarks, franchise agreements, and goodwill, which are not physical but have value to the company. The 'net' value means that any amortization or impairment charges have already been deducted from the original cost of these assets. For Checkers, the tradenames are considered indefinite-lived and are valued at $197,500 for both years presented.
A prospective franchisee should understand how Checkers values and manages these intangible assets, as they reflect the brand's strength and long-term value. While the net intangible assets appear relatively stable year-over-year, any significant changes in this value could indicate shifts in brand perception or the value of franchise agreements. It's also worth noting that these figures represent the consolidated financial position of the Checkers entity, not necessarily the performance of individual franchise locations.
Understanding the composition and valuation of these intangible assets can give a franchisee a better sense of the overall financial health and stability of the Checkers franchise system. Further due diligence might involve inquiring about the specific factors that contribute to these valuations and how they are expected to trend in the future.