Besides CDSI, did any other Checkers affiliates derive revenue from required franchisee purchases or leases during the fiscal year ended December 30, 2024?

According to Checkers' 2025 Franchise Disclosure Document, besides CDSI, no other Checkers affiliates derived revenue from required franchisee purchases or leases during the fiscal year ended December 30, 2024. However, Checkers itself, as the franchisor, did receive revenue from these required purchases and leases. For the fiscal year ended December 30, 2024, Checkers' total revenues were $300,381,238, with $6,189,551 (or 2.1%) coming from required franchisee purchases and leases. This amount includes $2,225,520 in gross revenue from subleases with franchisees, though Checkers states they did not earn a profit from these subleases during the 2024 fiscal year. CDSI, another affiliate, earned $7,890,469.14 in gross revenue from required purchases and leases by franchisees during the same period.

This revenue collected by Checkers from franchisee purchases is intended to offset expenses related to system-wide programs, such as those involving personnel, guest and operations, insurance procurement, promotional and price management tools, supply chain programs, brand protection, and research and development. While the intention is not to profit from these purchases, the disclosure notes that Checkers may ultimately earn a profit from franchisees' required purchases and leases of products and services.

For a prospective franchisee, this means that a portion of their payments for required products and services goes directly to Checkers to support the franchise system. While Checkers aims to use these funds for the benefit of the entire system, it's important to note that they may realize a profit from these transactions. Franchisees should be aware of this arrangement and understand how these funds are used to support the Checkers brand and operations. Understanding the specifics of these programs and how they benefit franchisees is a key consideration when evaluating the Checkers franchise opportunity.