What costs are Checkersrallys generally obligated to pay for under its leases?

According to Checkersrallys's 2025 Franchise Disclosure Document, when Checkersrallys leases land and buildings, the leases generally obligate Checkersrallys to cover costs associated with property taxes, insurance, and maintenance. These costs are then evaluated to determine if they are fixed or variable. If the costs are determined to be fixed, they are included in the calculation of the lease liability.

Fixed lease costs for operating lease payments are recognized on a straight-line basis over the lease term. These costs are included in various expense line items within the consolidated statement of operations, such as restaurant occupancy costs, franchise support and services expenses, general and administrative expenses, and restaurant retirement costs.

This means that as a franchisee, Checkersrallys factors these costs into its financial planning and accounting practices. The consistent recognition of these fixed costs over the lease term allows for predictable budgeting. Prospective franchisees should be aware of these obligations and how they are accounted for in Checkersrallys's financial statements, as they can impact the overall profitability and financial health of the franchise.