What was the advertising expense for Checkersrallys between January 17, 2023 and January 1, 2024 (or successor)?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ings (deficit) | 18,785 | (2,656) | | Total stockholders' equity | 117,234 | 95,295 | | Total liabilities and stockholders' equity | $ 455,780 | $ 460,717 | | | | |
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| Successor | Predecessor | |||||
|---|---|---|---|---|---|---|
| Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | ||||
| Revenues | ||||||
| Restaurant sales | $ | 255,474 | $ | 141,217 | $ | 130,191 |
| Franchise and retail royalty revenue | 35,389 | 18,608 | 15,385 | |||
| Franchise fees and other income | 9,518 | 5,317 | 4,061 | |||
| Total revenues | 300,381 | 165,142 | 149,637 | |||
| Costs and expenses | ||||||
| Restaurant food and paper costs | 81,660 | 45,102 | 41,194 | |||
| Restaurant labor costs | 79,230 | 44,446 | 38,348 | |||
| Restaurant occupancy costs | 22,378 | 11,778 | 11,145 | |||
| Restaurant depreciation | 5,871 | 2,524 | 7,529 | |||
| Other restaurant operating expenses | 34,053 | 20,357 | 17,423 | |||
| General and administrative expenses | 39,215 | 19,435 | 36,471 | |||
| Franchise support and service expenses | 5,226 | 3,634 | 1,696 | |||
| Advertising expense | 14,397 | 8,077 | 6,810 | |||
| Other depreciation and amortization | 3,441 | 2,093 | 900 | |||
| Restaurant retirement costs | 139 | 300 | 596 | |||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | |||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | |||
| Total costs and expenses | 288,058 | 159,039 | 229,584 | |||
| Operating income (loss) | 12,323 | 6,103 | (79,947) | |||
| Other income (expense) | ||||||
| Interest expense | (15,789) | (8,134) | (18,326) | |||
| Other income (expense) | 3 | 1 | (375) | |||
| Total other (expense) income | (15,786) | (8,133) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the advertising expense for the period from June 17, 2023, through January 1, 2024, was $8,077. Additionally, for the period from January 3, 2023, through June 16, 2023, the advertising expense was $6,810. Therefore, the total advertising expense for Checkersrallys between January 3, 2023 and January 1, 2024 was $14,887.
These figures represent Checkersrallys's expenses, not necessarily the advertising expenses that an individual franchisee might incur. Franchisees often contribute to advertising funds or co-ops, as noted elsewhere in the FDD, which are separate from the company's direct advertising expenses. The FDD also mentions that the company purchases print advertising on behalf of the company and franchisees.
Prospective franchisees should consider these advertising expenses in the context of their overall marketing strategy and budget. It's important to understand how Checkersrallys allocates advertising funds and what support they provide to franchisees in terms of marketing and advertising. Franchisees should also inquire about the specific requirements and options for local advertising to effectively promote their individual locations.