Checkers and Rally's logo

Checkers and Rally's

Burgers and hot dogs

Investment

$514,920

Initial Franchise Fee

$30,000

Units

728

Growth Rate

-12%

Overview About Investment Territories Support Operations Ranking History

Overview

Industry Food
Founded 1986
Franchising Since 1989
Parent Company Checkers Drive-In Restaurants Inc.
Leadership Chris Tebben, CEO & President
# of Employees at HQ 700

Units and Growth Chart

About Checkers and Rally's

Take a bite out of the 'crazy good food' found at Checkers and Rally’s!

Founded by James E. Mattei in Mobile, Alabama in 1986, Checkers and Rally’s is one of the largest hamburger drive-thru restaurant franchises in the United States. Checkers famously acquired Rally’s in 1999, increasing its outreach. There are over 850 Checkers and Rally’s locations in the U.S. with franchisees owning over 575 of them.

Checkers and Rally’s has learned to abandon the dining room in favor of fast drive-thru and walk-up service. Known for its milkshakes, burgers, and french fries, Checkers and Rally’s proves that the drive-thru setup can be incredibly effective. Their franchisees seem to enjoy a system that places its focus on making fresh, quality food for customers.

Why You May Want to Start a Checkers and Rally’s Franchise

Checkers and Rally’s is one of the more business-forward restaurant franchises, with executives understanding that if their locations fail, so do they. Because of this, Checkers and Rally’s strives to be inclusive and transparent. The company works closely with its franchisees to ensure a startup and secure business. They can also offer competitive incentives for franchised restaurants to keep teams motivated.

From the beginning, Checkers and Rally’s has been very open about where their locations do well. While they don't tend to focus their attention on the northwestern region of the U.S., they claim that the East Coast reports strong numbers. Additionally, southwestern states like California and Arizona are listed as substantial markets. Is the spot you have your eye on located in one of these areas?

What Might Make a Checkers and Rally’s Franchise a Good Choice?

One of the top contenders in the gigantic hamburger industry, Checkers and Rally’s is expanding its locations and customer convenience. Checkers and Rally’s has introduced online and mobile app delivery along with pick-up, as well. Franchisees may be benefitting from Checkers and Rally’s improvements with new restaurant designs that cut construction time for new locations. 

How to Open a Checkers and Rally’s Franchise

To be part of the Checkers and Rally’s team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

During the process of opening a Checkers and Rally’s franchise, take advantage of opportunities to speak with existing franchisees and ask questions directed to the Checkers and Rally’s team. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open a Checkers and Rally’s franchise, and you can get started with an initial investment.

Once you pass the screening, a financial business consultant will likely interview you to assess your financial standing. It's also a good idea to review the Financial Disclosure Document and visit various Checkers and Rally’s locations to get a well-rounded view of the business.

After Checkers and Rally’s approves your finances and you’ve created a business plan, you’ll usually visit the Restaurant Support Center. With support from its Operations Excellence program and your consultant, you can start dishing out those burgers.

Investment Details

Initial Franchise Fee $30,000
Initial Investment $514,920 - $2,132,493
Net Worth Requirement $750,000
Cash Requirement $250,000
Royalty Fee 4%
Ad Royalty Fee 4.5%
Technology Fee $190-$370/quarter
Term of Agreement 20 years
Is Franchise Term Renewable? Yes
Financing Third Party
Veterans Incentive Franchise fee waived

Available Territories

Franchising opportunities available in the following regions

Training & Support Programs

Comprehensive training and ongoing support to help you succeed

Training

On the Job Training 132-165 hours
Classroom Training 28-33 hours

Ongoing Support

Meetings & Conventions
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software

Marketing Support

Co-op Advertising
Ad Templates
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations & Requirements

Key operational details and requirements for running this franchise

Is absentee ownership allowed? No
Can this franchise be run from home/mobile unit? No
Can this franchise be run part time? No
# of employees required to run 50
Are exclusive territories available? Yes

Ranking History

Checkers and Rally's performance in the Franchise rankings over recent years

Additional Rankings

Curious to know where Checkers and Rally's ranked on other franchise lists? Find out below.

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022