What entities are included in the consolidated financial statements of Checkersrallys?

According to Checkersrallys's 2025 Franchise Disclosure Document, the consolidated financial statements include the results of operations, financial position, and cash flows of Checkers Drive-In Restaurants, Inc. (CDI), and its subsidiaries. The document specifies that all significant intercompany accounts and transactions are eliminated during the consolidation process. Checkersrallys consolidates all entities where the company has a controlling or voting financial interest, including wholly-owned subsidiaries.

However, the Checkers/Rally's National Production Fund, Inc. (NPF) and Checkers and Rally's Distribution and Services, Inc. (CDSI) are not included in the consolidated financial statements. Although these entities are related parties, as the company and its franchisees make payments to them, they are not consolidated. The contributions to the Fund represent 0.5% of net restaurant sales, while contributions to the advertising co-ops range from 0.5% to 4.25% of net restaurant sales. The payments to CDSI are included within "restaurant food and paper costs" in the consolidated statements of operations.

This means that while the financial performance of Checkersrallys itself and its direct subsidiaries are reflected in the consolidated statements, the financial activities of related but separate entities like the NPF and CDSI are not fully incorporated, although expenses related to these entities are noted. A prospective franchisee should be aware that the financial picture presented is specific to CDI and its subsidiaries, and additional due diligence may be needed to understand the broader financial relationships within the Checkersrallys system.