What was the reported fair value of Checkersrallys' tradenames acquired during the restructuring?

According to Checkersrallys's 2025 Franchise Disclosure Document, the fair value of tradenames acquired during the restructuring was $197,500. This valuation was part of a larger assessment of identifiable intangible assets. The tradenames have an indefinite useful life, according to the document.

The fair values were determined using methods like the relief from royalty and the income approach, specifically the multi-period excess earning method. Checkersrallys employed a third-party valuation specialist to prepare the valuation of intangible assets. This valuation incorporates significant unobservable inputs and requires considerable judgment and estimates, especially concerning the amount and timing of future cash flows.

For a prospective franchisee, understanding the valuation of these intangible assets is crucial. The valuation methods used, and the indefinite life assigned to the tradenames, can impact the financial statements and potentially affect future financial performance. Franchisees should be aware that these valuations are based on estimates and judgments, which can be subject to change.