Checkers & Rally's

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Checkers & Rally's

Checkers & Rally's Franchise FDD, Costs & Fees (2025)

Checkers & Rally's is a double drive-thru fast-food franchise serving burgers, hot dogs, seasoned fries, and milkshakes.

Checkers & Rally's, though initially independent entities, share a rich history within the fast-food sector. Rally's was the first to be established in Tennessee in 1984, followed by Checkers in Alabama in 1986. The two brands unified in 1999 via a stock-swap deal, merging their operations under a single corporate umbrella headquartered in Florida.

The franchise has carved out a prominent position in the market, offering a distinctive drive-thru experience that sets it apart from competitors. Checkers & Rally's franchise network boasts numerous multi-unit franchisees, underscoring the brand's robust growth potential and dedication to affordable expansion across diverse markets.

A major differentiator for Checkers & Rally's is its focus on efficient drive-thru restaurant designs, which are engineered to deliver impressive unit economics. This strategy not only ensures strong cash flow but also showcases the brand's innovative and adaptable approach, including e-commerce lanes and walk-up windows.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Checkers & Rally's offers 6 types of franchises:

Restaurant Type Initial Investment Range
Modular design drive-thru restaurant $514,920 to $2,132,493
Conversion restaurant $683,372 to $1,479,774
Endcap strip-center and gas/convenience restaurant $383,370 to $1,320,538
Gas station/convenience store, Non-Traditional, or Walmart restaurant $123,630 to $725,538
Site-built restaurant $1,064,657 to $1,877,201
Inline restaurant in a high-density market $601,725 to $1,066,979

We are summarizing below the main costs associated with opening a modular design drive-thru Checkers & Rally's restaurant

franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Modular design drive-thru restaurant

Type of Expenditure Amount
Initial Franchise Fee $20,000 – $30,000
Initial Advertising Deposit $15,000
Asset Transfer Fee $0 – $10,000
Restaurant Building Costs $354,653 – $1,292,640
Restaurant Equipment & Technology $42,153 – $329,538
Soft Costs $17,200 – $225,625
Signage including Menuboards $11,914 – $97,690
Inventory $4,000 – $12,000
Additional Funds – 3 Months $50,000 – $120,000
Total Estimated Initial Investment $514,920 – $2,132,493

Franchise Disclosure Document

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Competitors

Below are some of

Checkers & Rally's

key competitors in the

Burger

sector.

Started franchising
Franchisees

?

Franchise fee

?

Royalty fee

?

Investment

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Revenue (AUV)

?

Gross Profit

?

EBITDA

?

Home-based

?

Passive investment

?

FDD
Checkers & Rally's
1989
362
+
-12%
-12%
$30,000
2% - 4%

$124,000

-

$2,132,000

n.a.

$1,061,000

Upgrade

69.0%

n.a.

Upgrade

12.0%

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2016
2
+
0%
0%
$40,000
5.00%

$484,000

-

$802,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2021
9
+
n.a.
n.a.
$35,000
6.00%

$1,274,000

-

$1,778,000

Upgrade

n.a.

$1,574,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2013
3
+
0%
0%
$40,000
4.00%

$857,000

-

$2,235,000

Upgrade

n.a.

$1,453,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2024
2
+
100%
100%
$40,000
5.00%

$1,635,000

-

$4,888,000

Upgrade

n.a.

$4,337,000

71.3%

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2022
2
+
n.a.
n.a.
$40,000
6.00%

$559,000

-

$3,168,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2015
24
+
0%
0%
$35,000
6.00%

$183,000

-

$482,000

Upgrade

n.a.

$805,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
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?

Priority support

?

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Training 

Checkers & Rally's are dedicated to equipping their franchisees with the necessary skills and knowledge to uphold the brand's high standards and deliver exceptional customer service. Their training program includes the following key elements:

Initial Training:

Franchisees undergo an in-depth onboarding process that familiarizes them with the Checkers & Rally's system, covering essential aspects such as business practices, restaurant design, equipment usage, ingredient sourcing, recipes, preparation techniques, and overall operational standards. This training ensures that franchisees gain a thorough understanding of how to run a Checkers & Rally's restaurant, maintaining consistency and quality across all locations.

Training Supervision and Materials:

The training is led by seasoned professionals who ensure it meets the brand's rigorous standards while providing hands-on, practical knowledge. Franchisees receive a variety of instructional resources, including production manuals, online training modules, and other written materials specifically designed for the initial training phase.

Territory Protection

Franchisees are granted the right to own and operate a restaurant at an agreed-upon location. If a specific location is not determined before signing the Franchise Agreement, franchisees must choose a site within a designated area, referred to as the "Designated Area."

The Designated Area is solely for the purpose of site selection and does not provide territorial exclusivity or protection for the franchisees. Additionally, franchisees may be assigned a territory with limited protective rights, known as a "Protected Area."

Throughout the duration of the Franchise Agreement, Checkers & Rally's will not establish or authorize any other person to establish a restaurant within this Protected Area. However, Checkers & Rally's retains the right to solicit or accept orders from customers using their trademarks or any other marks without restriction.

Number of units

2025
Franchised units

413

379

362

Company-owned units

132

126

122

Total units

545

505

484

Competitors

Burger Village

Franchisees

?

2
+
0%
0%
Investment

?

$484,000 - $802,000

Smalls Sliders

Franchisees

?

9
+
n.a.
n.a.
Investment

?

$1,274,000 - $1,778,000

JL Beers

Franchisees

?

3
+
0%
0%
Investment

?

$857,000 - $2,235,000

Jollibee

Franchisees

?

2
+
100%
100%
Investment

?

$1,635,000 - $4,888,000

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Revenue (AUV)

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