What was the gross balance of goodwill for Checkersrallys as of January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
t projected to be profitable.
NOTE 9 - GOODWILL AND INTANGIBLE ASSETS, NET
As discussed in Note 4. Business Combination, as part of the business combination, the Company recognized $31.8 million of goodwill. The changes in goodwill during the successor periods are as follows:
| (Successor) |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the gross balance of goodwill as of January 1, 2024, was $31,767. Goodwill, in this context, refers to the intangible asset recognized during a business combination, specifically the amount Checkersrallys recorded as part of the business combination discussed in Note 4 of the financial statements.
For a prospective Checkersrallys franchisee, understanding goodwill is crucial because it reflects the value of intangible assets acquired by the company. While goodwill itself doesn't directly impact day-to-day operations, it's an indicator of the financial transactions and valuations Checkersrallys has undertaken. The amortization period for this goodwill is set at 10 years, meaning the expense is spread out over that duration.
The net balance of goodwill, which accounts for accumulated amortization, was $30,037 as of January 1, 2024. This figure represents the remaining value of the goodwill after accounting for the portion that has already been expensed. Monitoring these figures can provide insights into the financial management and strategic decisions of Checkersrallys, which indirectly affect the stability and resources available to franchisees.