What was the total net lease cost for Checkers for the year 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 Checkers received.
For a prospective Checkers franchisee, understanding the components of this total net lease cost is crucial. Operating lease expenses, which cover the use of properties, and variable lease expenses, which may fluctuate based on sales performance, are significant factors. Finance lease expenses, amortization of ROU assets, and interest on lease liabilities also contribute to the overall cost. Sublease income, if applicable, can offset these expenses, but it appears to be a relatively small amount.
It's important to note that these figures are based on Checkers's financial statements and may not directly reflect the lease costs a new franchisee will incur. A franchisee's lease costs will depend on the specific location, lease terms negotiated, and other factors. However, this information provides a general benchmark for understanding the scale of lease-related expenses within the Checkers business model. Franchisees should consult with financial advisors and carefully review lease agreements to accurately project their own costs.