What is the reported value of the tradenames 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 the tradenames acquired is $197,500. These tradenames have an indefinite life, meaning they are not amortized over a specific period for accounting purposes.
In addition to the tradenames, Checkersrallys also reports franchise agreements valued at $1,400 with a life of 15 years. The total value of intangible assets acquired is $198,900. This total encompasses both the tradenames and the franchise agreements.
For a prospective franchisee, understanding the value and lifespan of these intangible assets can be important. Tradenames represent the brand's recognition and reputation, while franchise agreements outline the contractual rights and obligations. The indefinite life of the tradenames suggests that Checkersrallys expects these brands to maintain their value over the long term.