What was the sublease income for Checkers from June 17, 2023 through January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
to be variable. Variable sublease rental income recorded for the fiscal year ended December 30, 2024 (Successor) and the periods from June 17, 2023 through January 1, 2024 (Successor) and from January 3, 2023 through June 16, 2023 (Predecessor), was $0.1 million, $0.1 million, and $0.1 million, respectively.
The Company is the sublessor on operating leases. The revenue from these subleases is recorded in franchise fees and other income in the accompanying consolid
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the sublease income recorded for the period from June 17, 2023, through January 1, 2024, was $1.9 million. This income is generated from subleasing land and buildings associated with the sale of certain company-operated restaurants.
Checkers acts as the sublessor on operating leases, and the revenue derived from these subleases is recorded under "franchise fees and other income" within the company's consolidated statements of operations. This indicates that Checkers retains responsibility for the original rent payments to the lessors, even while subleasing the properties to others.
For a prospective franchisee, understanding Checkers's sublease income is important as it reflects the financial strategies and revenue streams of the company. While franchisees are not directly involved in these sublease agreements, the financial health of the franchisor, as indicated by such income, can impact the support and services Checkers provides to its franchisees. Additionally, it provides insight into how Checkers manages its real estate assets and generates revenue beyond traditional franchise operations.