What is the typical payment timeframe for net revenue from delivery sales at Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The delivery sales performance obligation is satisfied upon the delivery of food to a third-party delivery partner. The Company acts as an agent in delivery sales and, therefore, records the revenue net of costs which include commissions, fees, and in certain cases taxes. In a delivery sale the Company has arranged for another party to transfer the food to an end-customer. The delivery partner maintains the costs of web and mobile applications and directly transacts with the end-customer. The delivery partner then schedules for the restaurant to prepare and deliver the food to one of the delivery partner's employees. 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, when Checkers arranges for a third party to deliver food to an end-customer, the net revenue (after deducting commissions, fees, and certain taxes) is generally paid to Checkers within 2 to 7 days from the end of the week of the sale. The delivery partner handles the costs of web and mobile applications and directly interacts with the end-customer. The delivery partner schedules the restaurant to prepare and deliver the food to one of their employees.
This means that Checkers franchisees can expect to receive payment for delivery sales relatively quickly, which can help with cash flow management. However, the revenue received is net of various costs, so franchisees should carefully consider these deductions when forecasting their potential earnings from delivery sales.
It's important for prospective franchisees to understand the specific terms and conditions related to delivery sales, including the fees charged by the delivery partners and any other associated costs. Understanding these details will allow franchisees to accurately assess the profitability of delivery sales and make informed business decisions.