What was the reported value of Checkersrallys tradenames as of January 1, 2024 (Successor)?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fiscal Year Ending | Amount |
|---|---|
| 2025 | $ 3,166 |
| 2026 | 3,166 |
| 2027 | 3,166 |
| 2028 | 3,166 |
| 2029 | 3,166 |
| Thereafter | $ 11,042 |
| Total | 26,872 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Intangible assets consisted of the following as of December 30, 2024 (Successor) and January 1,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the value of its tradenames as of January 1, 2024 (Successor) was $197,500. This valuation is categorized as indefinite-lived.
For a prospective franchisee, this figure represents the book value that Checkersrallys assigns to its brand names. It reflects the financial value Checkersrallys places on its intellectual property. This valuation can be influenced by factors such as brand recognition, market presence, and the overall strength of the Checkersrallys brand.
It's important to note that this value is based on accounting principles and may not directly correlate with the actual market value or consumer perception of the Checkersrallys brand. The valuation of intangible assets like tradenames involves significant judgment and estimates, often prepared by third-party specialists, as noted elsewhere in the FDD. These valuations rely on factors like future cash flows and royalty rates, which are inherently subject to uncertainty.
As a potential franchisee, understanding the valuation of the Checkersrallys tradenames provides insight into the financial importance the company places on its brand. However, it is advisable to conduct independent research and consider market factors to assess the true value and potential of the Checkersrallys brand in your specific market.