What was the total value of Checkers' intangible assets as of the acquisition date, June 16, 2023?

According to Checkers' 2025 Franchise Disclosure Document, the total value of intangible assets acquired as of June 16, 2023, the acquisition date, was $198,900. These intangible assets primarily consist of tradenames valued at $197,500, which have an indefinite useful life, and franchise agreements valued at $1,400, with a weighted average useful life of 15 years.

The valuation of these intangible assets was determined using specific methods. The fair values of the tradenames were established using the relief from royalty method, while the franchise agreements were valued using the income approach, specifically the multi-period excess earning method. These valuations were prepared by a third-party valuation specialist, indicating an objective assessment of the asset values.

For a prospective Checkers franchisee, understanding the valuation and nature of these intangible assets is crucial. The tradenames, with their indefinite life, represent the long-term brand recognition and value that Checkers possesses. The franchise agreements, on the other hand, have a finite useful life, reflecting the period over which Checkers expects to benefit from these agreements. The fact that a third-party specialist was used to value these assets suggests that Checkers is committed to transparent and accurate financial reporting. However, it's important to note that the valuation incorporates significant unobservable inputs and requires judgment and estimates, including the amount and timing of future cash flows, which could be subject to change.