What was the weighted-average remaining lease term for Checkersrallys' finance leases as of January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| January 1, 2024 (Successor) | January 2, 2023 (Predecessor) | |
|---|---|---|
| Weighted-average remaining lease term-finance leases | 22.6 years | 22.4 years |
| Weighted-average remaining lease term-operating leases | 19.1 years | 19.5 years |
| Weighted-average discount rate—finance leases | 4.15% | 2.99% |
| Weighted-average discount rate-operating leases | 3.94% | 2.07% |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the weighted-average remaining lease term for finance leases as of January 1, 2024, was 22.6 years. This figure represents the average length of time left on Checkersrallys' finance leases, weighted by the size or value of each lease.
For a prospective franchisee, this indicates the typical duration of the financial commitments Checkersrallys has for its leased properties. Finance leases, unlike operating leases, essentially transfer the risks and rewards of ownership to the lessee (Checkersrallys). This long remaining lease term suggests that Checkersrallys has secured long-term control over these assets.
It's also worth noting that the weighted-average remaining lease term for operating leases was 19.1 years as of the same date. The difference between the finance and operating lease terms could reflect different strategies or asset types covered by each lease category. A franchisee should consider how these lease terms might affect the long-term financial stability and operational flexibility of Checkersrallys.