Checkers and Rally's
Burgers, fries
- 2022 Franchise 500 Rank
-
#247 Ranked #162 last year
- Initial investment
-
$791K - $2.4M
- Units as of 2022
-
834 3% over 3 years
Here’s what you need to know if you’re interested in opening a Checkers and Rally's franchise.
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 a new 4.0 Modular restaurant design that cuts 90 days of 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.
Company Overview
About Checkers and Rally's
- Industry
- Food
- Related Categories
- Hamburgers
- Founded
- 1986
- Parent Company
- Oak Hill Capital
- Leadership
- Frances Allen, CEO
Franchising Overview
- Franchising Since
- 1989 (33 years)
- # of employees at HQ
- 700
- Where seeking
-
This company is seeking new franchisees in the following US states: Alabama, Arkansas, Arizona, California, Connecticut, District of Columbia, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Wisconsin, West Virginia
- # of Units
- 834 (as of 2022)
Franchisor Information
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Checkers and Rally's franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $30,000
- Initial Investment
- $790,797 - $2,368,316
- Net Worth Requirement
- $750,000
- Cash Requirement
- $250,000
- Veteran Incentives
- Franchise fee waived
- Royalty Fee
- 4%
- Ad Royalty Fee
- 4.5%
- Term of Agreement
- 20 years
- Is franchise term renewable?
- Yes
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Checkers and Rally's has relationships with third-party sources which offer financing to cover the following: startup costs, equipment
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 132-165 hours
- Classroom Training
- 28-33 hours
- Additional Training
- In training restaurant
- Ongoing Support
-
Purchasing Co-opsMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
-
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- Yes
- 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
Franchise 500 Ranking History
Compare where Checkers and Rally's landed on this year’s Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where Checkers and Rally's ranked on other franchise lists? Find out below.
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