What was the accumulated amortization for Checkersrallys as of December 30, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
t projected to be profitable.
NOTE 9 - GOODWILL AND INTANGIBLE ASSETS, NET
As discussed in Note 4. Business Combination, as part of the business combination, the Company recognized $31.8 million of goodwill. The changes in goodwill during the successor periods are as follows:
| (Successor) |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the accumulated amortization as of December 30, 2024, was $4,895. This figure represents the total amount of amortization that has been recognized against the gross balance of $31,767 for intangible assets with a 10-year amortization period. The net balance, after deducting the accumulated amortization, is $26,872.
For a prospective Checkersrallys franchisee, understanding accumulated amortization is crucial for assessing the net value of the franchise's intangible assets. Amortization is the systematic reduction of the book value of an intangible asset over its useful life. A higher accumulated amortization relative to the gross balance indicates that a significant portion of the asset's value has already been expensed.
It's also important to note the difference between the accumulated amortization as of December 30, 2024 ($4,895) and the figure as of January 1, 2024 ($1,730). This difference reflects the amortization expense recognized during the fiscal year ended December 30, 2024. Franchisees should monitor these figures to understand how the value of intangible assets is changing over time, as this can impact the overall financial health of Checkersrallys.