What expenses does Checkers intend to offset with revenues collected from franchisee and company-owned restaurant purchases of products and services?

According to Checkers' 2025 Franchise Disclosure Document, the company intends to use revenues collected from both franchisee and company-owned restaurant purchases of products and services to offset expenses related to administering system-wide programs. These programs encompass a broad range of operational and support functions critical to the Checkers franchise system.

Specifically, Checkers plans to allocate these revenues to cover expenses associated with people, guest, and operations programs. Additionally, funds will be directed towards insurance procurement, promotional and price management tools, and supply chain programs. Brand protection, including quality assurance and food safety initiatives, will also be supported by these revenues. Furthermore, Checkers intends to invest in research and development activities to enhance the brand and its offerings.

While Checkers' intention is to offset these specific expenses, the FDD also states that Checkers may earn a profit from franchisees' required purchases and leases of products and services. For the fiscal year which ended December 30, 2024, Checkers' total revenues were $300,381,238, of which $6,189,551 (or 2.1%) were revenues from required purchases and leases of products and services by franchisees. Franchisees should be aware of this potential for profit generation by Checkers and how it might affect the overall cost structure of their franchise operations.