When is the restaurant sales performance obligation satisfied for Company-operated Checkers restaurants?

According to Checkers' 2025 Franchise Disclosure Document, the restaurant sales performance obligation is satisfied when food is delivered to the customer at Company-operated restaurants. Payment for the food is due immediately upon delivery. The price the customer pays may vary due to coupons and discounts, which are recorded at the time of the food delivery.

For Checkers restaurants, revenue from restaurant sales includes revenues recognized upon the delivery of food to the customer at Company-operated restaurants. Restaurant sales are recognized at the point of sale and are presented net of coupons and discounts, sales tax, and other sales-related taxes.

For delivery sales through a third-party delivery partner, the performance obligation is satisfied upon the delivery of food to the third-party delivery partner. Checkers acts as an agent in delivery sales and records the revenue net of costs, including commissions, fees, and in certain cases, taxes. The net revenue is generally paid in terms of 2 to 7 days from the end of the week of sale. Delivery sales revenue varies by the costs of the service and by delivery partner.

For Checkers franchisees, the franchise royalties performance obligation is satisfied upon the delivery of the food by the franchisee to their customer or to a third-party delivery partner. Checkers recognizes the royalty revenue in the period in which the franchise sales occur over the contract term of the franchise agreement.