Where are fixed lease costs for operating lease payments included within Checkersrallys' consolidated statement of operations?

According to Checkersrallys' 2025 Franchise Disclosure Document, fixed lease costs for operating lease payments are included in specific line items within the company's consolidated statement of operations. These costs, recognized on a straight-line basis over the lease term, are allocated to several categories.

Specifically, Checkersrallys includes these fixed lease costs in "restaurant occupancy costs", "franchise support and services expenses", "general and administrative expenses", and "restaurant retirement costs". This means that a portion of the expenses reported in each of these categories reflects the fixed lease payments associated with the company's operating leases.

For a prospective franchisee, understanding this allocation is crucial for interpreting Checkersrallys' financial statements. When reviewing the consolidated statement of operations, franchisees should be aware that the expenses in these categories are, in part, influenced by fixed lease costs. This provides a more comprehensive view of the various factors impacting Checkersrallys' overall financial performance.