What is the reported value of the franchise agreements acquired by Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Value | Life (Years) | ||
|---|---|---|---|
| Tradenames | $197,500 | Indefinite | |
| Franchise agreements | 1,400 | 15 | |
| Total intangible assets acquired | $198,900 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the reported value of acquired franchise agreements is $1,400. These agreements have a reported life of 15 years. This valuation is part of the total intangible assets acquired, which amount to $198,900, with tradenames valued at $197,500 having an indefinite life.
For a prospective franchisee, this information provides insight into the valuation of key intangible assets held by Checkersrallys. The franchise agreements, though relatively low in individual value, contribute to the overall asset base of the company. The longer lifespan of the franchise agreements suggests a sustained revenue stream associated with these agreements.
It is important to note that these values reflect the book value of the assets and may not directly correlate with the actual revenue generated from these agreements. Franchisees should consider this information in conjunction with other financial disclosures in the FDD to assess the overall financial health and stability of Checkersrallys.