What was the reported value of Checkers' tradenames, which are considered indefinite-lived intangible assets, as of December 30, 2024?

According to Checkers' 2025 Franchise Disclosure Document, the reported value of its tradenames, considered indefinite-lived intangible assets, was $197,500 as of December 30, 2024. This figure reflects the company's assessment of the value of its brand names, which are not amortized over time but are subject to annual impairment reviews. The same value was reported on January 1, 2024.

For a prospective Checkers franchisee, this indicates the financial importance Checkers places on its brand recognition and intellectual property. The tradenames are a significant asset on the company's balance sheet. The tradenames are subject to impairment testing, which means that Checkers periodically assesses whether the fair value of its tradenames has declined below their carrying value. If such a decline is determined to be significant, Checkers would be required to write down the value of the tradenames on its balance sheet.

The valuation of tradenames involves subjective assessments and estimations, as detailed in the FDD. Factors such as market conditions, future cash flows, and royalty rates are considered when determining the fair value of these intangible assets. These valuations are typically performed by third-party specialists, adding credibility to the reported figures.

It is important for potential franchisees to understand how Checkers manages and protects its brand, as the strength of the brand directly impacts the potential success of individual franchise locations. The consistent valuation of the tradenames at $197,500 between January 1, 2024 and December 30, 2024, suggests a stable brand value during that period.