What was the total net lease cost for Checkers for the period ended December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
s and restaurant retirement costs line items within the accompanying consolidated statement of operations.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The following table provides quantitative information concerning the Company's leases under ASC 842, Leases.
| For the Period For the Year Ended December 30, 2024 | from June 17, | 2023 through January 1, 2024 | For the Period | January 3, 2023 through June 16, 2023 | from | |
|---|---|---|---|---|---|---|
| Finance lease expense: | $ 2,699 | $ | 1,201 | $ | 674 | |
| Amortization of ROU assets | 1,396 | 455 | 237 | |||
| Inter |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the total net lease cost for the period ended December 30, 2024, was $21,879. This figure represents the sum of various lease-related expenses, including finance lease expenses, amortization of right-of-use (ROU) assets, interest expense on lease liabilities, operating lease expenses, and variable lease expenses, minus any sublease income.
For a prospective Checkers franchisee, understanding the components of this total net lease cost is crucial. Operating lease expenses, which cover the use of property and equipment, make up a significant portion at $14,873. Finance lease expenses, along with the associated amortization and interest, account for $2,699, $1,396, and $1,303 respectively. Variable lease expenses, which may fluctuate based on factors like sales performance, add another $3,524. Sublease income, which reduces the overall cost, is reflected as a deduction of $2,006.
It's important to note that these figures reflect Checkers's overall lease obligations and may not directly translate to the specific costs a new franchisee will incur. However, they provide a valuable benchmark for understanding the types and magnitudes of lease-related expenses that Checkers franchisees typically face. Prospective franchisees should carefully review their individual lease agreements and consult with financial advisors to accurately project their own lease costs.