What is the amount of the current portion that is subtracted from the total payments for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
| Fiscal Year Ending | Amount |
|---|---|
| 2025 | $ 1,788 |
| 2026 | 850 |
| 2027 | 11,024 |
| 2028 | 78,738 |
| Total payments | 92,400 |
| Less: current portion | (1,788) |
| Less: deferred financing cost | (341) |
| Non-current portion | $ 90,271 |
[Item 21: FINANCIAL STATEMENTS]
| Fiscal Year Ending | Amount | |
|---|---|---|
| 2025 | $ | 67 |
| 2026 | 144 | |
| 2027 | 155 | |
| 2028 | 166 | |
| 2029 | 144 | |
| Thereafter | 7,174 | |
| Total payments | 7,850 | |
| Less: current portion | (67) | |
| Non-current portion | $ | 7,783 |
[Item 21: FINANCIAL STATEMENTS]
| Fiscal year ending | A | mount |
|---|---|---|
| 2024 | $ | 1,879 |
| 2025 | 942 | |
| 2026 | 994 | |
| 2027 | 10,761 | |
| 2028 | 74,118 | |
| Thereafter | 7,290 | |
| Total payments | 95,984 | |
| Less current portion | 1,879 | |
| Less deferred financing cost | 447 | |
| Non-current portion | $ | 93,658 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the current portion subtracted from total payments varies depending on the specific financial context.
In one instance, with total payments of $92,400, the current portion subtracted is $1,788. This calculation results in a non-current portion of $90,271 after also subtracting deferred financing costs of $341.
In another scenario, with total payments of $7,850, the current portion subtracted is $67, resulting in a non-current portion of $7,783. A third instance shows total payments of $95,984, with a current portion of $1,879 subtracted, along with deferred financing costs of $447, leading to a non-current portion of $93,658.
These figures are important for prospective Checkersrallys franchisees as they illustrate how the timing of payments affects the categorization of liabilities on the balance sheet. The 'current portion' represents the amount due within the next year, while the 'non-current portion' is due beyond that timeframe. Understanding these distinctions is crucial for assessing the short-term and long-term financial obligations associated with the franchise.