What was the total advertising expense for Checkers for the year ended December 30, 2024 (in thousands)?
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, the advertising expense for the year ended December 30, 2024, was $14,397 (in thousands). This figure represents the total amount Checkers spent on advertising-related activities during that fiscal year.
It's important to note that Checkers and its franchisees contribute to the Checkers/Rally's National Production Fund, Inc. (NPF), which is used for creating and producing advertising for both company-operated and franchised restaurants. The company's contributions to the fund are included in the advertising expense reported in the consolidated statements of operations. Additionally, some company-operated restaurants and franchisees participate in advertising co-ops, which are also factored into the advertising expense.
The contributions to the NPF represent 0.5% of net restaurant sales, while contributions to the advertising co-ops range from 0.5% to 4.25% of net restaurant sales. Furthermore, Checkers recorded $1.3 million related to print advertising in advertising expense for the fiscal year ended December 30, 2024. This provides a more detailed breakdown of where the advertising dollars are being allocated, between national funds, local co-ops, and specific advertising mediums like print.
Prospective franchisees should consider this advertising expense when evaluating the overall financial performance of Checkers. Understanding how advertising funds are collected, managed, and spent can help franchisees assess the potential impact of marketing efforts on their restaurant's sales and profitability.