What were the restaurant occupancy costs for Checkers for the period January 1, 2023 through January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| Successor | Predecessor | |||||||
|---|---|---|---|---|---|---|---|---|
| Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | ||||||
| Revenues | ||||||||
| Restaurant sales | $ | 255,474 | $ | 141,217 | $ | 130,191 | ||
| Franchise and retail royalty revenue | 35,389 | 18,608 | 15,385 | |||||
| Franchise fees and other income | 9,518 | 5,317 | 4,061 | |||||
| Total revenues | 300,381 | 165,142 | 149,637 | |||||
| Costs and expenses | ||||||||
| Restaurant food and paper costs | 81,660 | 45,102 | 41,194 | |||||
| Restaurant labor costs | 79,230 | 44,446 | 38,348 | |||||
| Restaurant occupancy costs | 22,378 | 11,778 | 11,145 | |||||
| Restaurant depreciation | 5,871 | 2,524 | 7,529 | |||||
| Other restaurant operating expenses | 34,053 | 20,357 | 17,423 | |||||
| General and administrative expenses | 39,215 | 19,435 | 36,471 | |||||
| Franchise support and service expenses | 5,226 | 3,634 | 1,696 | |||||
| Advertising expense | 14,397 | 8,077 | 6,810 | |||||
| Other depreciation and amortization | 3,441 | 2,093 | 900 | |||||
| Restaurant retirement costs | 139 | 300 | 596 | |||||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | |||||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | |||||
| Total costs and expenses | 288,058 | 159,039 | 229,584 | |||||
| Operating income (loss) | 12,323 | 6,103 | (79,947) | |||||
| Other income (expense) | ||||||||
| Interest expense | (15,789) | (8,134) | (18,326) | |||||
| Other income (expense) | 3 | 1 | (375) | |||||
| Total other (expense) income | (15,786) | (8,133) | (18,701) | |||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, restaurant occupancy costs are detailed in the financial statements, which include both Successor and Predecessor periods due to a Recapitalization Agreement. The Successor period runs from June 17, 2023, through January 1, 2024, while the Predecessor period relevant to the question spans from January 3, 2023, through June 16, 2023. These costs are crucial for prospective franchisees to understand as they represent a significant portion of operating expenses.
For the period from June 17, 2023, through January 1, 2024 (Successor), Checkers' restaurant occupancy costs were $11,778. For the period from January 3, 2023, through June 16, 2023 (Predecessor), the restaurant occupancy costs were $11,145. These figures provide insight into the costs associated with occupying the restaurant space, which may include rent, property taxes, and insurance.
To determine the total restaurant occupancy costs for the entire period from January 1, 2023, to January 1, 2024, a prospective Checkers franchisee would need to combine the occupancy costs from both the Predecessor and Successor periods. This calculation would involve adding the $11,778 (Successor) to the $11,145 (Predecessor), resulting in a total of $22,923. This total provides a comprehensive view of the restaurant occupancy costs for Checkers during the specified timeframe, which is essential for financial planning and assessing the profitability of a franchise location.