What was the restaurant depreciation expense for Checkersrallys for the period January 3, 2022?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
545,165 | Total stockholder's equity (deficit) | | 95,295 | | (81,092) | | | Total liabilities and stockholder's equity (deficit) | $ | 460,717 | $ | 545,165 | See accompanying notes to consolidated financial statements
CHECKERS DRIVE—IN RESTAURANTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| For the Periods Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| Janua | 2023 through ry 1, 2024 ccessor) | 202: June | January 3, 2023 through June 16, 2023 (Predecessor) | ary 2, 2023 edecessor) | ary 3, 2022 | |||
| Revenues: | ||||||||
| Restaurant sales | $ | 141,217 | $ | 130,191 | $ | 278,541 | $ | 291,447 |
| Franchise and retail royalty revenue | 18,608 | 15,385 | 30,149 | 29,613 | ||||
| Franchise fees and other income | 5,317 | 4,061 | 9,685 | 10,964 | ||||
| Total Revenues | 165,142 | 149,637 | 318,375 | 332,024 | ||||
| Costs and expenses: | ||||||||
| Restaurant food and paper costs | 45,102 | 41,194 | 91,396 | 86,774 | ||||
| Restaurant labor costs | 44,446 | 38,348 | 86,874 | 88,361 | ||||
| Restaurant occupancy costs | 11,778 | 11,145 | 23,097 | 28,432 | ||||
| Restaurant depreciation | 2,524 | 7,529 | 13,084 | 13,838 | ||||
| Other restaurant operating expenses | 20,357 | 17,423 | 39,597 | 38,570 | ||||
| General and administrative expenses | 19,435 | 36,471 | 35,999 | 39,668 | ||||
| Franchise support and service expenses | 3,634 | 1,696 | 6,447 | 5,088 | ||||
| Advertising expense | 8,077 | 6,810 | 14,825 | 15,464 | ||||
| Other depreciation and amortization | 2,093 | 900 | 1,542 | 1,583 | ||||
| Restaurant retirement costs | 300 | 596 | 305 | 531 | ||||
| Impairment of long-lived assets | 623 | 66,633 | 4,763 | - | ||||
| Net loss on disposal of fixed assets | 670 | 839 | 606 | 1,301 | ||||
| Net loss on sales of restaurants | 38 | 238 | ||||||
| Total costs and expenses | 159,039 | 2. | 229,584 | 318,773 | 3 | 319,610 | ||
| Operating income (loss) | 6,103 | (79,947) | (398) | 12,414 | ||||
| Other income (expense) | ||||||||
| Interest income | 1 | - | 1 | (E) | ||||
| Interest expense | (8,134) | (18,326) | (26,203) | (22,887) | ||||
| Other income (expense) | :=: | (375) | 24 | 201 | ||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the restaurant depreciation expense for the period of January 3, 2022 was $13,838. This figure represents the accounting expense recognized for the reduction in value of Checkersrallys's restaurant assets due to wear and tear, obsolescence, or other factors, over this specific period.
Depreciation is a non-cash expense that reflects the allocation of the cost of an asset over its useful life. For a Checkersrallys franchisee, understanding depreciation expenses is crucial for assessing the profitability and financial health of their restaurant. It impacts the net income and can influence decisions related to capital investments and asset management.
It's important to note that this depreciation expense is just one component of the overall costs and expenses for Checkersrallys. Prospective franchisees should carefully review all financial statements and consult with financial advisors to gain a comprehensive understanding of the financial performance and obligations associated with operating a Checkersrallys franchise.