What was the weighted average useful life in years for the franchise agreements acquired by Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2,923) | | Net assets acquired | 66,053 | | Goodwill | $ 31,766 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The fair values of identifiable intangible assets acquired as of the restructuring date are as follows:
| | Acquisition Date Fair Value | Weighted Average Useful L
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the weighted average useful life for franchise agreements acquired is 15 years. This means that Checkers amortizes the value of these franchise agreements over a 15-year period for accounting purposes. The initial fair value assigned to these franchise agreements upon acquisition was $1,400.
For a prospective Checkers franchisee, this information is relevant in understanding how Checkers values and accounts for its franchise agreements on its financial statements. It also provides insight into the expected duration over which Checkers anticipates benefiting from these agreements.
It's important to note that this amortization period reflects Checkers' accounting practices and may not directly correlate with the term of an individual franchise agreement, which, as stated elsewhere in the FDD, generally provides for a 20-year term and a 10-year renewal option subject to certain conditions.