Checkers & Rally's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$169,000 - $2,126,000
Royalty fee
4.00%

Checkers & Rally's: A Leader in Drive-Thru Dining Innovation

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.

The brand is deeply committed to its core values, which emphasize a heart for service, giving 100%, and maintaining a can-do attitude. These principles foster a compelling culture that attracts both franchisees and customers alike. With over 30 years in the industry, Checkers & Rally's is dedicated to effective restaurant operations, prioritizing franchisee profitability and community involvement.

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 4 types of franchises:

Type Initial Investment
Modular Design Drive-Thru Restaurant $751,117 to $2,000,522
Site Built, Conversion or Used Modular Drive-Thru Restaurant $301,225 to $2,125,762
Endcap Strip-Center and Gas/Convenience $365,370 to $863,769
Non-Traditional, Walmart or In-Line Restaurant $169,052 to $766,544

We are summarizing below the main costs associated with opening a site built, conversion or used modular 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).

SITE BUILT OR CONVERSION RESTAURANT

Type of Expenditure Amount
Initial Franchise Fee $20,000 - $30,000
Initial Advertising Deposit $10,000
Restaurant Building $116,754 - $1,520,800
Restaurant Equipment & Technology $91,628 - $395,190
Soft Costs $10,000 - $24,000
Signage including Menuboards $11,843 - $50,772
Inventory $1,000 - $5,000
Additional Funds - 3 Months $40,000 - $90,000
TOTAL ESTIMATED INITIAL INVESTMENT $301,225 - $2,125,762

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Number of units

2023
Franchised units

605

576

568

Company-owned units

254

264

266

Total units

859

840

834

Franchise Disclosure Document

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.

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