What is the weighted average useful life in years for the franchise agreements acquired by Checkers?

According to Checkers's 2025 Franchise Disclosure Document, the weighted average useful life for franchise agreements acquired is 15 years. The franchise agreements themselves are valued at $1,400. This means that Checkers amortizes the value of these agreements over a 15-year period for accounting purposes.

For a prospective franchisee, this information is relevant in understanding how Checkers values and accounts for its franchise agreements. It indicates the period over which Checkers expects to benefit from these agreements. The amortization period reflects the expected duration of the economic benefits Checkers anticipates receiving from the franchise agreements it has acquired.

Additionally, the FDD states that franchise agreements are amortized based on the expected future benefits to be realized. The amortization period for franchise agreements is 15 years (Successor) and 27 years (Predecessor) and amortization expense is recorded on a straight-line basis over such period. This suggests that the amortization period can vary depending on whether Checkers is operating as a Successor or Predecessor entity, with the Successor period using a 15-year amortization period.

This difference in amortization periods could be due to changes in the company's structure or accounting practices following a business combination or restructuring. Franchisees should be aware of these accounting practices, as they can affect the company's reported financial performance and, potentially, its investment decisions.