For the fiscal year ending December 30, 2024, what were Checkersrallys' total revenues?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
d unusual personal gain.
Items We Supply or Derive Revenue From
We and our affiliates may receive revenues from required purchases and leases of products and services by franchisees. The revenues are collected by approved suppliers or distribution centers on behalf of the system and are paid to us. Our total revenues for the fiscal year which ended December 30, 2024 were $300,381,238 of which $6,189,551 or 2.1% were revenues from required purchases and leases of products and services by franchisees. Our total revenue from franchisee purchases includes $2,225,520 in gross revenue from subleases with franchisees. We generally collect rent as a pass through for landlords on the underlying lease but may earn a profit. We did not earn any profit from subleases during our 2024 fiscal year. Our intention is not to earn a profit, but instead to use all revenues collected from franchisee and company-owned restaurant purchases of products and services to offset expenses we incur in administering system-wide programs such as people, guest and operations programs, insurance procurement, promotional and price management tools, supply chain programs, brand protection (including quality assurance and food safety) programs and research and development. However, we may earn a profit from franchisees' required purchases and leases of products and services.
Our affiliate, CDSI, also earned $7,890,469.14 in gross revenue from required purchases and leases of products and services by franchisees during our 2024 fiscal year.
Other than CDSI, none of our affiliates derived any revenue or other material considerations from required franchisee
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company's total revenues for the fiscal year ending December 30, 2024, were $300,381,238. A portion of these revenues, specifically $6,189,551 (or 2.1%), came from required purchases and leases of products and services by franchisees. This indicates that a significant portion of Checkersrallys's income is derived from sources other than franchisee purchases and leases.
Within the revenue from franchisee purchases, $2,225,520 was gross revenue from subleases with franchisees. Checkersrallys states that it generally collects rent as a pass-through for landlords on the underlying lease but may earn a profit. However, for the 2024 fiscal year, Checkersrallys did not earn any profit from these subleases. This suggests that while subleasing is a revenue stream, it is not necessarily a profit center for the company.
Additionally, Checkersrallys's affiliate, CDSI, earned $7,890,469.14 in gross revenue from required purchases and leases of products and services by franchisees during the same fiscal year. This further illustrates the importance of franchisee-related revenue streams within the Checkersrallys system. It's important to note that other than CDSI, no other affiliates derived revenue from required franchisee purchases or leases during this period. Checkersrallys states that it intends to use all revenues collected from franchisee and company-owned restaurant purchases of products and services to offset expenses incurred in administering system-wide programs such as people, guest and operations programs, insurance procurement, promotional and price management tools, supply chain programs, brand protection (including quality assurance and food safety) programs and research and development. However, Checkersrallys may earn a profit from franchisees' required purchases and leases of products and services.