For Checkersrallys, what is included in 'Restaurant sales'?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
"Restaurant sales" includes revenues recognized upon delivery of food to the customer at Company-operated restaurants. "Restaurant sales" are recognized upon sale and are presented net of coupons and discounts, sales tax and other sales-related taxes. Revenue is recognized when the food is purchased by the customer, which is when our performance obligation is satisfied. "Restaurant sales" also includes revenues recognized upon delivery of food to a third-party delivery company. The revenue is recognized as a receivable from the third-party delivery service and collection is made within three to seven business days. Delivery sales are recognized net of commissions, fees, taxes, and discounts.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, 'Restaurant sales' include revenues from food delivered to customers at company-operated restaurants. These sales are recognized at the point of sale and are presented net of coupons, discounts, sales tax, and other sales-related taxes. This means that the reported restaurant sales figure reflects the actual revenue received after deducting these items.
Restaurant sales also include revenues from food delivered to customers through third-party delivery companies. In these cases, Checkersrallys recognizes the revenue as a receivable from the delivery service, with collection typically occurring within three to seven business days. This indicates that Checkersrallys accounts for delivery sales promptly, even before receiving payment from the third-party service. Delivery sales are recognized net of commissions, fees, taxes, and discounts.
For a prospective franchisee, understanding what constitutes 'Restaurant sales' is crucial for accurately assessing potential revenue and profitability. It is important to note that the reported sales figures are net of various deductions, providing a clearer picture of the actual income generated from restaurant operations. Additionally, the inclusion of third-party delivery sales highlights the importance of this revenue stream and how it is accounted for in Checkersrallys's financial reporting.