What was the total value of Checkersrallys' property and equipment, net, as of December 30, 2024?
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' 2025 Franchise Disclosure Document, the total value of property and equipment, net, as of December 30, 2024, was $31,679. The FDD provides a consolidated balance sheet detailing the assets, liabilities, and equity of Checkersrallys. This figure represents the net book value of all physical assets owned by the company, such as buildings, equipment, and vehicles, after accounting for accumulated depreciation.
For a prospective franchisee, this number provides insight into the capital intensity of Checkersrallys' operations. A high value of property and equipment may indicate that Checkersrallys requires significant investment in physical assets to generate revenue. It is important to note that this value is 'net,' meaning it reflects the original cost of these assets less any depreciation. Depreciation is an accounting method used to allocate the cost of an asset over its useful life.
Furthermore, Note 8 in Item 21 of the Checkersrallys FDD provides additional details regarding property and equipment, net. The depreciation expense associated with property and equipment was $6.0 million for the fiscal year ended December 30, 2024. The company also recorded impairment charges related to property and equipment in the amount of $1.9 million for the fiscal year ended December 30, 2024, primarily due to stores that closed during the period. These figures can help a franchisee understand how Checkersrallys manages its assets and accounts for their declining value over time.