Checkers & Rally’s Franchise FDD, Profits & Costs (2025)
Checkers & Rally’s is a leading fast-food franchise known for its efficient drive-thru service and menu featuring burgers, fries, and shakes.
Based in Tampa, Florida, the brand is the result of a 1999 merger between Checkers, founded in 1986 in Mobile, Alabama, and Rally’s, established in 1985 in Louisville, Kentucky. This merger strengthened its position in the industry through a unique dual-branding strategy.
The franchise focuses on using technology and innovations to lower operational costs and boost efficiency. It also offers flexible building formats, including freestanding prototypes and inline sites suited for urban areas.
Initial Investment
How much does it cost to start a Checkers & Rally’s franchise? It costs on average between $169,000 – $2,126,000 to start a Checkers & Rally’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Checkers & Rally’s offers 4 types of franchises:
| Restaurant Type | Initial Investment Range |
|---|---|
| Modular design drive-thru restaurant | $751,117 to $2,000,522 |
| Site built, conversion or used modular drive-thru | $301,225 to $2,125,762 |
| Endcap strip-center and gas/convenience restaurant | $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 Checkers & Rally’s Modular design drive-thru restaurant. For more information on costs required to start a Checkers & Rally’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 – $30,000 |
| Initial Advertising Deposit | $10,000 |
| Restaurant Building Costs | $440,000 – $1,400,626 |
| Restaurant Building Shipping Costs | $8,400 – $49,660 |
| Restaurant Equipment & Technology | $186,626 – $313,052 |
| Soft Costs (see Note 3) | $3,500 – $27,000 |
| Signage including Menuboards | $41,591 – $75,184 |
| Inventory | $1,000 – $5,000 |
| Additional Funds – 3 Months | $40,000 – $90,000 |
| Total (excluding real estate costs) | $751,117 – $2,000,522 |
Average Revenue (AUV)
How much revenue can you make with a Checkers & Rally’s franchise? A Checkers & Rally’s franchised restaurant makes on average $1,020,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,548,000 yearly revenue for similar burger franchises. Below are 10 Checkers & Rally’s competitors as a comparison:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Checkers & Rally’s locations are there?
As of the latest data, Checkers & Rally’s operates 806 locations across the United States. Of these, 551 are franchise-owned and 255 are company-owned. The brand continues to grow, with plans for additional expansion in regions such as California, Nevada, and the Carolinas.
What is the total investment required to open a Checkers & Rally’s franchise?
The total investment required to open a Checkers & Rally’s franchise ranges from $169,000 to $2,126,000.
What are the ongoing fees for a Checkers & Rally’s franchise?
For a Checkers & Rally’s franchise, ongoing fees include a royalty fee of 4% of gross sales. Additionally, franchisees are required to pay a marketing fee of 4.5% of gross sales, which goes toward national and regional advertising efforts. These fees are standard in the industry and help support brand development, advertising, and ongoing operational support for franchisees.
What are the financial requirements to become a Checkers & Rally’s franchisee?
To become a Checkers & Rally’s franchisee, the financial requirements include a minimum net worth of $750,000 and at least $250,000 in liquid capital.
These financial thresholds ensure that potential franchisees have the resources necessary to cover initial investments, operating costs, and any unforeseen expenses during the early stages of the business.
How much can a Checkers & Rally’s franchise owner expect to earn?
The average gross sales for a Checkers & Rally’s franchise are approximately $1.02 million per location. Assuming a 15% operating profit margin, $1.02 million yearly revenue can result in $153,000 EBITDA annually.
Who owns Checkers & Rally’s?
Checkers & Rally’s is currently owned by a group of senior lenders, including Arbour Lane Capital Management, Garnett Station Partners, and Guggenheim Investments.
This ownership shift occurred in 2023 as part of a debt restructuring deal, reducing the company’s long-term debt and providing capital for growth and remodeling initiatives. Prior to this, Checkers & Rally’s was owned by Oak Hill Capital Partners, which had acquired the brand in 2017.
Disclaimer
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