How does Checkersrallys recognize restaurant sales when food is delivered to a third-party delivery company?

According to Checkersrallys's 2025 Franchise Disclosure Document, the company recognizes revenue from restaurant sales, including those made through third-party delivery services. Specifically, Checkersrallys recognizes revenue upon the delivery of food to the third-party delivery partner. This revenue is recorded as a receivable from the delivery service, with collections typically made within three to seven business days.

Checkersrallys acts as an agent in these delivery sales, meaning the revenue recorded is net of costs. These costs include commissions, fees, and, in some instances, taxes. This approach reflects that Checkersrallys is primarily responsible for providing the food, while the delivery partner handles the logistics of getting the food to the end customer. The delivery partner also manages the web and mobile applications and directly interacts with the customer.

For a prospective franchisee, this means that the reported revenue from delivery sales will not be the total amount paid by the customer. Instead, it will be the amount Checkersrallys receives after the delivery partner has deducted their fees. This net revenue approach is important for franchisees to understand when forecasting potential earnings and managing their financial expectations. Franchisees should also be aware that the exact terms of payment and the costs associated with delivery services can vary by delivery partner, which could impact their overall profitability.