What was the gross amount of reacquired franchise rights for Checkersrallys as of January 2, 2023 (Predecessor)?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| January 1, 2024 (Successor) | Januar | y 2, 2 | 023 (Prede | cesso | or) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross mount | Accumulated Amortization | Net | Gross Amount | Accumulated Amortization | Net | ||||||
| Reacquired franchise rights | = | - | - 3 | 3,220 | (480) | 2,740 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, as of January 2, 2023 (Predecessor), the gross amount of reacquired franchise rights was $3,220 (in thousands). This figure represents the total value of franchise rights that Checkersrallys had repurchased from franchisees up to that date, before any amortization or write-offs were applied. These reacquired rights are considered assets on Checkersrallys's balance sheet.
It's important to note that these reacquired franchise rights are amortized over time, meaning their value is gradually reduced on the balance sheet to reflect their use. The amortization expense for these rights is included in "franchise and retail royalty revenue" in the consolidated statements of operations. For the year ended January 2, 2023, the amortization expense on reacquired franchise rights was $0.5 million.
For a prospective Checkersrallys franchisee, understanding these figures provides insight into how Checkersrallys manages its assets and franchise relationships. The reacquisition of franchise rights could indicate strategic decisions by Checkersrallys to consolidate operations or regain control of specific locations. The amortization of these rights affects Checkersrallys's financial reporting and profitability, which could indirectly impact franchisees through royalty rates, marketing support, or other fees.