What was the total value of Checkers' finance lease right-of-use assets as of December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ain internal control-related matters that we identified during the audit.
Tampa, Florida April 1, 2025
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| December 30, January 1, 2024 2024 ASSETS Current assets Cash and cash equivalents $ 15,562 $ 12,557 Accounts and notes receivable, net 7,717 7,399 Inventory 2,428 2,178 Prepaid expenses 5,338 5,308 Other current assets 799 2,867 Total current assets 31,844 30,309 Property and equipment, net 31,679 29,309 Operating lease right-of-use assets 132,807 145,3
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the total value of their finance lease right-of-use assets as of December 30, 2024, was $31,231. This figure represents the company's rights to use assets under finance leases, which are essentially long-term leases where the risks and rewards of ownership are transferred to the lessee (Checkers). These assets are reported on Checkers' balance sheet.
For a prospective Checkers franchisee, understanding the nature and extent of these finance leases is crucial. It indicates the level of long-term financial commitments Checkers has undertaken. Reviewing the complete financial statements and related notes is essential to assess the overall financial health and stability of the company. Franchisees should pay close attention to the terms of these leases, including the lease periods, interest rates, and any potential liabilities or obligations.
The finance lease right-of-use assets increased from $22,632 on January 1, 2024, to $31,231 on December 30, 2024. This increase suggests that Checkers entered into new finance lease agreements during the year or that the existing leases were revalued. Franchisees should inquire about the specific assets covered by these leases and how they contribute to the company's revenue generation. Understanding the details behind these figures will help franchisees evaluate the financial risks and opportunities associated with investing in a Checkers franchise.
It is important for potential franchisees to consult with a financial advisor to fully understand the implications of these finance leases and how they might affect the franchisee's investment. This analysis should be part of a comprehensive due diligence process before making a final decision to invest in a Checkers franchise.