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CHECKERS RESTAURANT OR RALLY'S RESTAURANT
Checkers Drive-In Restaurants, Inc. franchises quick-service drive-thru restaurants under the Checkers and Rally’s brands, offering a limited menu of hamburgers, cheeseburgers, hot dogs, famous seasoned fries, sandwiches, and innovative desserts like milkshakes and funnel cake fries at exceptional value. The business model emphasizes convenience through dual drive-thru designs, small footprints, operational efficiency with metrics-driven tools, and a focus on late-night dining in various formats including modular, site-built, conversions, endcaps, in-lines, and non-traditional sites. They target consumers seeking bold, flavorful alternatives to standard fast-food in the competitive QSR market, including high-density urban areas and traffic-generating locations.
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Franchise Costs
4% royalty + up to 3% national production fund + $194-$261/mo technology fees (quarterly tech, firewall, and payment gateway fees)
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataCHECKERS RESTAURANT OR RALLY'S RESTAURANT Franchise Analysis
Picture dual drive-thrus humming late into the night, slinging bold burgers and craveable fries to urban night owls since 1986—that's the Checkers & Rally's edge in a sea of bland QSR sameness. Yet recent FDD data hints at a sharper reality: system contraction and disputes shadowing expansion dreams, with SBA loan history painting an unexpectedly resilient picture for backers. Does this value-driven drive-in powerhouse still rev engines for new owners, or is the checkered flag waving caution?
Item 7 in the 2024 FDD lays out a wide initial investment spectrum of $192,052 to $2,777,950, covering modular builds, conversions, or prime endcaps with small footprints for efficiency. Franchisees pay a $30,000 fee upfront, then 4% royalty plus up to 3% national production fund and monthly tech fees ($194-$261) for metrics tools and gateways. No Item 19 earnings disclosure leaves AUVs and profits opaque, forcing buyers to dig via current owners or proxies—a red flag in QSR where benchmarks matter, especially with 238 corporate units anchoring the model.
System metrics reveal turbulence: total locations dipped from 485 in 2022 to 457 in 2023 (-6% growth), 55 terminations, just 6 transfers, but 30 projected new units signal rebound intent. SBA records shine with 94 loans averaging $820,854 and a low 3.2% default rate, suggesting solid financing viability amid litigation over terminations and ad contributions. Prospective buyers must probe recent FDD Item 20 trends, validate urban site performance, and audit vendor disputes to gauge if Checkers & Rally's bold flavors can fuel personal ROI in a tightening market.
Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How CHECKERS RESTAURANT OR RALLY'S RESTAURANT Compares
Key Insights
- Lower investment than 82% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
CHECKERS RESTAURANT OR RALLY'S RESTAURANT Current | $192K – $2.8M | $30K | 4.0% | 547 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
+15 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for CHECKERS RESTAURANT OR RALLY'S RESTAURANT franchisees (2013 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
94 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
723 franchisee contacts on file from official FDD filings.
723 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Termination disputes and advertising contribution disputes with former franchisees.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a CHECKERS RESTAURANT OR RALLY'S RESTAURANT franchise ranges from $192,052 to $2,777,950. This includes a franchise fee of $30,000. Ongoing royalty fees are 4.0% of gross sales.
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