What was the weighted-average remaining lease term for Checkersrallys' operating 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 operating leases as of January 1, 2024, was 19.1 years. This figure represents the average length of time left on Checkersrallys' operating leases, weighted by the size or value of each lease.
For a prospective franchisee, this information is relevant because it provides insight into the long-term lease obligations Checkersrallys has for its properties. Operating leases are typically for shorter terms than finance leases, and the 19.1-year average suggests that Checkersrallys has secured relatively long-term locations for its restaurants. This can provide stability for franchisees, as it reduces the risk of needing to relocate in the near future.
It's important to note that this is a weighted average, so some individual leases may have significantly shorter or longer terms. Franchisees should inquire about the specific lease terms for their potential location to fully understand their obligations and the long-term prospects of the site. Additionally, the FDD also lists the weighted-average remaining lease term for operating leases as of January 2, 2023, which was 19.5 years. This indicates a slight decrease in the average remaining lease term year-over-year.