What was the total value of Checkers' operating lease right-of-use assets as of January 1, 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's 2025 Franchise Disclosure Document, the total value of their operating lease right-of-use assets as of January 1, 2024, was $145,380. This figure represents the value of Checkers's rights to use leased properties under operating leases.
For a prospective Checkers franchisee, understanding the value of operating lease right-of-use assets is crucial because it reflects the company's reliance on leased locations for its operations. A significant value in this category suggests that Checkers depends heavily on leasing properties rather than owning them outright. This can impact the financial stability and flexibility of the company, as lease obligations are contractual and must be met regardless of business performance.
Franchisees should consider this information in conjunction with the operating lease liabilities, also disclosed in the financial statements, to assess the overall impact of lease obligations on Checkers's financial health. It's also important to note that these figures are based on accounting standards that require companies to recognize lease assets and liabilities on their balance sheets, providing a more transparent view of their financial obligations.