What was the value of Checkers' operating ROU assets for the period ended January 1, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
mporary differences that give rise to significant portions of the deferred income tax assets and liabilities recognized within "deferred income tax liabilities" in the accompanying consolidated balance sheets as of December 30, 2024 (Successor) and January 1, 2024 (Successor) were as follows:
| For the Year Ended December 30, 2024 (Successor) | For the Period Ended January 1, 2024 (Successor) | |
|---|---|---|
| Deferred tax assets | ||
| Net operating loss carryforwards | $ 58 | $ - |
| Business interest limitation carryforward | 24,472 | 21,518 |
| Accruals | 2,184 | 2,211 |
| Operating ROU assets | 36,262 | 39,355 |
| Difference between book and tax basis of property and equipment | 3,183 | 9,423 |
| Allowance for credit losses | 163 | 69 |
| Stock-based compensation | - | 32 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the value of their operating Right-of-Use (ROU) assets as of January 1, 2024, was $39,355 thousand. This figure represents the company's capitalized value of assets related to operating leases, essentially the value of their right to use leased properties and equipment.
For a prospective Checkers franchisee, understanding ROU assets is crucial because it reflects the financial obligations Checkers has for its leased locations. These assets and related lease liabilities can significantly impact the company's financial health and, by extension, the stability of the franchise system. Franchisees should be aware of how lease obligations are managed, as store closures can lead to write-offs of these assets, as evidenced elsewhere in the FDD.
It's important to note that this value is a snapshot at a specific point in time and can fluctuate due to various factors, including new leases, lease modifications, and store closures. Franchisees should consider this information in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of Checkers' financial position and its ability to support its franchisees.