Chuck E Cheese - FREE tokens for good grades (3 for an A, 2 for a B, etc, up to a total of 15 per kid). 

Krispy Kreme Doughnuts -  FREE doughnuts 1 per A  Up to 6 FREE

Blockbuster - 1 FREE "Kids/Families" movie rental for "A's" on your report card.

Fazoli's - Fazoli's doesn't have rewards for grades. However, young readers can ask their local Fazoli's about the Friendly Reader Program. You can get a Fazoli's bookmark and fill out the information on the bookmark. Then read 5 books, and you will receive a free kid's meal. NOTE: Not all Fazoli's Restaurants participate in this program, so check with the Fazoli's nearest you for details.

Limited Too - $5 discount on merchandise for a report card with passing grades on it.

Albertson's - 2 FREE Movie rentals for good grades (Not sure if they are still doing this or not!)

Post your finds!
 

Do they do anything for M's (Mastery)?  My kids are in elementry and are given M (mastery), P (partial mastery) and N (needs improvement). 

Barnes & Noble has started their FREE BOOK for Summer Reading program again.  We do this with our daughter each year and she loves it!

http://www.barnesandnoble.com/summerreading/index.asp?r=1&afsrc=1&r=1

Here's How It Works:

1. Kids read any 8 books.

2. Kids use the Summer Reading Journal to tell us their favorite part of each book. A parent/guardian signs it when it's complete.

3. Children bring their completed journal to a Barnes & Noble store between May 29th & September 2nd, 2008.

4. We'll give them a coupon for a FREE book! They choose from a list of exceptional paperback titles.*

* Eligible books will be listed on the coupon. Choices must be made from eligible stock. No special orders. Limit of 1 form per school-age child (grades 1-6), please. Incomplete forms will be ineligible for free books.

Mcdonalds has a Governer's Summer reading incentive right now.

Inside each booklet (They gave these out at the kids schools or on your tray at Mcdonalds) is an instant coupon for FREE Apple Dippers.  Once you take the summer reading challenge (Reading 20 minutes a day) you mail in the post card and everyone gets a free Happy Meal coupon)

We went to McD's last night and they gave each child a booklet. 

Zions bank also pays for good grades!!!

Most community libraries also have summer reading programs.  This may be a little late in the summer for this now, but I thought I would give an update on our kid's experience with the Provo City Library.  They had to read a certain amount of time each day and received a large bag of vouchers for free kids meals and other free stuff.  They also received a book and will get to participate in a Magic Show for reading four non-fiction books.  For our oldest daughter we required her to read the children's Famous Americans series and for our youngest daughter we read the Value Tale books to her.  Here are a few places they received coupons for:

Burger King
Carls' Jr.
Village Inn
Black Jack Pizza
Pier 49
Bowling @ Fat Cats
Jumin' Jacks

So, definitely check out your local library!