Does Checkersrallys provide material benefits to a franchisee based on their use of designated or approved suppliers?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We attempt to negotiate purchase arrangements with suppliers (including price terms) for the benefit of all Restaurants, including those owned by franchisees. We do not provide material benefits (e.g., renewal or additional franchises) to a franchisee based on his use of designated or approved suppliers.
Suppliers may pay us rebates or allowances based on purchases by Checkers and Rally's franchisees and by us for our company-owned Checkers Restaurants and Rally's Restaurants. The payments may vary from supplier to supplier, and in some cases, the basis for the payment varies over time with respect to the same supplier. Suppliers who exhibit at our conventions contribute to the cost of the conventions.
In the fiscal year ended December 30, 2024, one supplier provided allowances directly to Checkers Restaurants and Rally's Restaurants, their affiliates, as well as the NPF, based in large part on the amount of sales to all Checkers Restaurants and Rally's Restaurants. For each participating Checkers Restaurant and Rally's Restaurant (whether companyowned or franchised), the supplier paid a fixed dollar amount per gallon of beverage syrup directly to each participating restaurant, and paid a fixed dollar amount per gallon of beverage syrup to the NPF.
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, Checkersrallys does not provide material benefits to a franchisee based on their use of designated or approved suppliers. Checkersrallys aims to negotiate purchase arrangements with suppliers, including price terms, to benefit all restaurants, including those owned by franchisees.
Suppliers may provide rebates or allowances based on purchases made by Checkersrallys franchisees and the company-owned restaurants. These payments can vary among suppliers, and the basis for payment may change over time with the same supplier. Additionally, suppliers may contribute to the cost of Checkersrallys's conventions by exhibiting at them.
For the fiscal year ended December 30, 2024, one supplier provided allowances directly to Checkers Restaurants and Rally's Restaurants, their affiliates, as well as the NPF, based in large part on the amount of sales to all Checkers Restaurants and Rally's Restaurants. For each participating Checkers Restaurant and Rally's Restaurant (whether companyowned or franchised), the supplier paid a fixed dollar amount per gallon of beverage syrup directly to each participating restaurant, and paid a fixed dollar amount per gallon of beverage syrup to the NPF.