What was the reported value of net assets acquired by Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ts rates, and market multiples, among other items.
Transaction Related Expenses
Transaction related expenses consist primarily of advisory, legal, accounting, valuation, and other professional and consulting fees in connection with the Out-of-Court Restructuring and are expensed as incurred.
Property and Equipment, Net
Property and equipment were recorded at fair value in connection with the Merger for the Predecessor periods and in connection with the Out-of-Court Restructuring for the Successor period and are otherwise recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the lesser of their estimated useful lives (generally 10 years) or the remaining lease term.
Amortization of assets recorded as capital leases under ASC 840, Leases are included within depreciation expense for the period ended January 3, 2022. Expenditures for betterments are capitalized. Maintenance and repairs are expensed as incurred.
Goodwill
Goodwill represents the excess of the consideration transferred over the net of the acquisition date fair values of the assets acquired and liabilities assumed in a business combination.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
I am unable to provide a specific figure for the value of net assets acquired by Checkersrallys, according to the 2025 Franchise Disclosure Document excerpts provided. While the document includes financial statements, specifically consolidated statements of cash flows, it does not explicitly state the value of net assets acquired. The statements do include details on various financial activities, such as net loss, depreciation, amortization, and changes in operating assets and liabilities. However, these details do not directly translate to the value of net assets acquired.
The excerpts discuss accounting practices related to property and equipment, goodwill, and transaction-related expenses. Property and equipment are recorded at fair value in connection with the Merger and the Out-of-Court Restructuring. Goodwill represents the excess of consideration transferred over the net of the acquisition date fair values of assets acquired and liabilities assumed in a business combination. Transaction-related expenses primarily consist of advisory, legal, accounting, valuation, and other professional and consulting fees.
To obtain the specific value of net assets acquired, a prospective Checkersrallys franchisee should directly request this information from the franchisor. Understanding this figure is crucial for assessing the financial health and stability of the company, which can impact the franchisee's investment and operational strategies. Requesting clarification on how the company defines and calculates net assets acquired would also be beneficial.