What was the net value of Checkersrallys' property and equipment as of January 1, 2024 (Successor)?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| - | 5,472 | 5 | 2,714 | | 4,440 | | 3,526 | | | | | $ | 7,879 | $ | 4,791 | $ | 8,826 | $ | 8,004 | | |
(Tabular Dollars in Thousands, Except Share and per Share Data)
10. Property and Equipment, Net
Property and equipment, net consisted of the following as of January 1, 2024 (Successor) and January 2, 2023 (Predecessor):
| January 1, 2024 (Successor) | revesion. | ary 2, 2023 decessor) | Estimated Useful Lives | ||
|---|---|---|---|---|---|
| Land | $ | 6,735 | $ | 4,207 | 3 |
| Leasehold and land improvements | 804 | 2 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the net value of property and equipment as of January 1, 2024 (Successor) was $29,309. This figure represents the depreciated value of Checkersrallys's assets such as land, leasehold improvements, buildings, equipment, furniture, and fixtures, after accounting for accumulated depreciation. The gross value of these assets totaled $32,165 before a deduction of $2,856 for accumulated depreciation.
For a prospective franchisee, this indicates the level of investment Checkersrallys has in its physical assets. It is important to note that these figures are presented in thousands of dollars. Understanding the composition and depreciation of these assets can provide insights into the company's capital management and potential future capital expenditure needs.
Reviewing the notes related to property and equipment, as well as understanding the depreciation methods used, can offer a clearer picture of the financial health and asset management strategies of Checkersrallys. Additionally, comparing these values with previous years and with other franchises in the same industry can help a franchisee assess the relative efficiency and investment levels of Checkersrallys.