Checkers & Rally’s Franchise FDD, Profits & Costs
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 $124,000 – $2,132,000 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 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 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 | $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 |
Checkers & Rally's Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Checkers & Rally’s franchise?
Most franchise buyers in Checkers & Rally’s’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Checkers & Rally’s franchise investment?
Payback periods for franchises in Checkers & Rally’s’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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