How did one supplier provide allowances to Checkers Restaurants, Rally's Restaurants, their affiliates, and the NPF in the fiscal year ended December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In the fiscal year ended December 30, 2024, one supplier provided allowances directly to Checkers Restaurants and Rally's Restaurants, their affiliates, as well as the NPF, based in large part on the amount of sales to all Checkers Restaurants and Rally's Restaurants. For each participating Checkers Restaurant and Rally's Restaurant (whether companyowned or franchised), the supplier paid a fixed dollar amount per gallon of beverage syrup directly to each participating restaurant, and paid a fixed dollar amount per gallon of beverage syrup to the NPF.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, one supplier provided allowances to Checkers Restaurants, Rally's Restaurants, their affiliates, and the NPF (presumably, National Purchasing Federation) during the fiscal year ended December 30, 2024. The allowances were based on the sales volume to all Checkers and Rally's Restaurants.
Specifically, the supplier paid a fixed dollar amount per gallon of beverage syrup directly to each participating Checkers or Rally's restaurant, whether company-owned or franchised. Additionally, the supplier paid a fixed dollar amount per gallon of beverage syrup to the NPF.
This arrangement means that Checkers franchisees could benefit directly from these supplier allowances, receiving payments based on their beverage syrup purchases. The NPF also benefits, potentially using these funds for the benefit of the Checkers and Rally's system as a whole. It is important for prospective franchisees to understand how these allowances are structured and whether they are guaranteed or subject to change.