As of January 2, 2023, what was the gross amount of unfavorable leasehold interests for Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, the company recognized both favorable and unfavorable leasehold interests at fair value as part of an Out-of-Court Restructuring, which was accounted for as a business combination. The document provides details on the net leasehold interests as of January 2, 2023.

The "Consolidated Statements of Cash Flows" includes a line item for the "Change in unfavorable leasehold interests" for the period ended January 2, 2023 (Predecessor), which is listed as ($29) in thousands. However, this represents the change in the value of unfavorable leasehold interests during that period, not the gross amount of unfavorable leasehold interests as of January 2, 2023.

While the FDD mentions that Checkersrallys recognized "unfavorable leasehold interests," it does not state the gross amount of these interests as of January 2, 2023. A prospective franchisee should ask Checkersrallys for the specific gross amount of unfavorable leasehold interests as of January 2, 2023, to gain a clearer understanding of the company's financial position and lease obligations.