What is the reported value of the 'Operating right-of-use assets' for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ignificant audit findings, and certain internal control-related matters that we identified during the audit.
Tampa, Florida April 1, 2025
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| Successor | ||
|---|---|---|
| December 30, | January 1, | |
| 2024 | 2024 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 15,562 | $ 12,557 |
| Accounts and notes receivable, net | 7,717 | 7,399 |
| Inventory | 2,428 | 2,178 |
| Prepaid expenses | 5,338 | 5,308 |
| Other current assets | 799 | 2,867 |
| Total current assets | 31,844 | 30,309 |
| Property and equipment, net | 31,679 | 29,309 |
| Operating lease right-of-use assets | 132,807 | 145,380 |
| Finance lease right-of-use assets | 31 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the 'Operating lease right-of-use assets' are reported for two dates: December 30, 2024, and January 1, 2024. As of December 30, 2024, the value is $132,807. As of January 1, 2024, the value is $145,380. These figures represent the company's rights to use leased assets for the duration of the lease term.
Operating lease right-of-use assets are a common element on the balance sheets of franchise companies, especially those that lease real estate for their restaurant locations. These assets reflect the value of the company's right to use properties under operating leases, which are leases where the risks and rewards of ownership remain with the lessor (landlord).
A prospective Checkersrallys franchisee should understand how these lease assets and related liabilities impact the company's financial health. It's also important to note that these values can change over time due to factors such as new leases, lease modifications, and impairments (write-offs) of assets, as discussed elsewhere in the financial statements.