What was the advertising expense for Checkersrallys for the period January 3, 2022?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
545,165 | Total stockholder's equity (deficit) | | 95,295 | | (81,092) | | | Total liabilities and stockholder's equity (deficit) | $ | 460,717 | $ | 545,165 | See accompanying notes to consolidated financial statements
CHECKERS DRIVE—IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| For the Periods Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Janua | 2023 through ry 1, 2024 ccessor) | 202: June | January 3, 2023 through June 16, 2023 (Predecessor) | ary 2, 2023 edecessor) | ary 3, 2022 | |||
| Revenues: | ||||||||
| Restaurant sales | $ | 141,217 | $ | 130,191 | $ | 278,541 | $ | 291,447 |
| Franchise and retail royalty revenue | 18,608 | 15,385 | 30,149 | 29,613 | ||||
| Franchise fees and other income | 5,317 | 4,061 | 9,685 | 10,964 | ||||
| Total Revenues | 165,142 | 149,637 | 318,375 | 332,024 | ||||
| Costs and expenses: | ||||||||
| Restaurant food and paper costs | 45,102 | 41,194 | 91,396 | 86,774 | ||||
| Restaurant labor costs | 44,446 | 38,348 | 86,874 | 88,361 | ||||
| Restaurant occupancy costs | 11,778 | 11,145 | 23,097 | 28,432 | ||||
| Restaurant depreciation | 2,524 | 7,529 | 13,084 | 13,838 | ||||
| Other restaurant operating expenses | 20,357 | 17,423 | 39,597 | 38,570 | ||||
| General and administrative expenses | 19,435 | 36,471 | 35,999 | 39,668 | ||||
| Franchise support and service expenses | 3,634 | 1,696 | 6,447 | 5,088 | ||||
| Advertising expense | 8,077 | 6,810 | 14,825 | 15,464 | ||||
| Other depreciation and amortization | 2,093 | 900 | 1,542 | 1,583 | ||||
| Restaurant retirement costs | 300 | 596 | 305 | 531 | ||||
| Impairment of long-lived assets | 623 | 66,633 | 4,763 | - | ||||
| Net loss on disposal of fixed assets | 670 | 839 | 606 | 1,301 | ||||
| Net loss on sales of restaurants | 38 | 238 | ||||||
| Total costs and expenses | 159,039 | 2. | 229,584 | 318,773 | 3 | 319,610 | ||
| Operating income (loss) | 6,103 | (79,947) | (398) | 12,414 | ||||
| Other income (expense) | ||||||||
| Interest income | 1 | - | 1 | (E) | ||||
| Interest expense | (8,134) | (18,326) | (26,203) | (22,887) | ||||
| Other income (expense) | :=: | (375) | 24 | 201 | ||||
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 year ended January 3, 2022 (Predecessor) was $15,464. This figure reflects the total amount Checkersrallys spent on advertising during that specific fiscal year.
For a prospective franchisee, understanding the advertising expenses is crucial as it indicates the level of support Checkersrallys provides in terms of marketing and brand awareness. Advertising expenses can cover various activities, including print, digital, and local marketing initiatives. These efforts aim to drive customer traffic and increase sales for both company-owned and franchised restaurants.
It's important to note that advertising strategies and expenses can change over time based on market conditions and the company's overall business strategy. Franchisees may also be required to contribute to advertising funds or co-ops, as detailed elsewhere in the FDD, to support local and regional marketing efforts. Therefore, a prospective franchisee should inquire about the current advertising strategies, required contributions, and the potential return on investment from these marketing activities.