What was the total amount of Checkersrallys advertising expenses in 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | January 1, 2024 | June 16, 2023 | |||
|---|---|---|---|---|---|
| Revenues | |||||
| Restaurant sales | $ 255,474 | $ 141,217 | $ 130,191 | ||
| Franchise and retail royalty revenue | 35,389 | 18,608 | 15,385 | ||
| Franchise fees and other income | 9,518 | 5,317 | 4,061 | ||
| Total revenues | 300,381 | 165,142 | 149,637 | ||
| Costs and expenses | |||||
| Restaurant food and paper costs | 81,660 | 45,102 | 41,194 | ||
| Restaurant labor costs | 79,230 | 44,446 | 38,348 | ||
| Restaurant occupancy costs | 22,378 | 11,778 | 11,145 | ||
| Restaurant depreciation | 5,871 | 2,524 | 7,529 | ||
| Other restaurant operating expenses | 34,053 | 20,357 | 17,423 | ||
| General and administrative expenses | 39,215 | 19,435 | 36,471 | ||
| Franchise support and service expenses | 5,226 | 3,634 | 1,696 | ||
| Advertising expense | 14,397 | 8,077 | 6,810 | ||
| Other depreciation and amortization | 3,441 | 2,093 | 900 | ||
| Restaurant retirement costs | 139 | 300 | 596 | ||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | ||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | ||
| Total costs and expenses | 288,058 | 159,039 | 229,584 | ||
| Operating income (loss) | 12,323 | 6,103 | (79,947) | ||
| Other income (expense) | |||||
| Interest expense | (15,789) | (8,134) | (18,326) | ||
| Other income (expense) | 3 | 1 | (375) | ||
| Total other (expense) income | (15,786) | (8,133) | (18,701) | ||
| Loss before income tax expense (benefit) | (3,463) | (2,030) | (98,648) | ||
| Income tax expense (benefit) | (24,723) | 540 | (7,542) | ||
| Net income (loss) | $ 21,260 | $ (2,570) | $ (91,106) |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the total advertising expense for the year 2024 was $14,397. This figure represents the expenses Checkersrallys incurred for advertising purposes during that fiscal year.
For a prospective franchisee, understanding the advertising expenses is crucial as it reflects the brand's investment in marketing and promotional activities. These activities can directly impact brand awareness and customer traffic to individual franchise locations. A higher advertising expense could indicate a stronger focus on marketing, potentially benefiting franchisees through increased sales and brand recognition.
However, franchisees should also investigate how these advertising funds are allocated. It is important to determine whether the advertising benefits all franchisees or is focused on specific regions or initiatives. Additionally, franchisees should inquire about any required contributions to advertising funds and how those contributions are managed and utilized by Checkersrallys. Understanding the return on investment from advertising is essential for evaluating the overall value of the franchise.