For Checkersrallys, what amount of right-of-use assets was obtained in exchange for new operating lease liabilities as of January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ignificant audit findings, and certain internal control-related matters that we identified during the audit.
Tampa, Florida April 1, 2025
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| Successor | ||
|---|---|---|
| December 30, | January 1, | |
| 2024 | 2024 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 15,562 | $ 12,557 |
| Accounts and notes receivable, net | 7,717 | 7,399 |
| Inventory | 2,428 | 2,178 |
| Prepaid expenses | 5,338 | 5,308 |
| Other current assets | 799 | 2,867 |
| Total current assets | 31,844 | 30,309 |
| Property and equipment, net | 31,679 | 29,309 |
| Operating lease right-of-use assets | 132,807 | 145,380 |
| Finance lease right-of-use assets | 31,231 | 22,632 |
| Intangibles assets, net | 198,723 | 198,849 |
| Favorable leasehold interests | 1,421 | 1,848 |
| Goodwill, net | 26,872 | 30,037 |
| Other assets | 1,203 | 2,353 |
| Total assets | $ 455,780 | $ 460,717 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company obtained $1,006,000 in right-of-use assets in exchange for new operating lease liabilities for the period of June 17, 2023, through January 1, 2024. This indicates the value of assets Checkersrallys recognized on its balance sheet as a result of entering into new operating leases during that time.
For a prospective franchisee, this information provides insight into how Checkersrallys structures its lease agreements and the financial impact of those leases. Operating leases are a common way for businesses to acquire the use of property without purchasing it outright, and the right-of-use asset represents the franchisee's right to use the leased asset over the lease term. The corresponding operating lease liability represents the franchisee's obligation to make lease payments.
It's important to note that this figure only reflects the assets obtained in exchange for new operating lease liabilities during the specified period. It does not include the total value of all operating lease assets held by Checkersrallys, which would be a larger number reflecting leases entered into in prior periods. Franchisees should consider the lease terms and conditions carefully, as they will be responsible for fulfilling the lease obligations.
Understanding these lease-related assets and liabilities is crucial for assessing the overall financial health and obligations of Checkersrallys. A franchisee should consult with a financial advisor to fully understand the implications of these lease arrangements.