Franchise Deep Dive: Checker's & Rally's Franchise Costs, Fees, Profit and Data

Checkers and Rally’s have been in business for more than 30 years. The fast-food burger concepts look identical to one another, and that’s because they are essentially the same restaurant. The layout, décor and menu are all the same. The only differences are the name printed on the sign and the packaging.

However, they weren’t always the same. Rally’s started in Tennessee in 1984, and Checkers opened in 1986 in Alabama. In 1999, Checkers acquired Rally’s, and they’ve been the same restaurant ever since. The chains are headquartered in Tampa, Florida.

The vintage-themed chains serve traditional burgers, chicken sandwiches, hot dogs, fries and more. Most Checkers and Rally’s restaurants do not have indoor dining and focus on serving customers on the go through drive-thrus and walk-up windows.

In 2020, consumer data reported Technomic Ignite called Checkers & Rally’s fries the most “craveable” of all fast-food fries. The brand has been labeled the "Best Drive-Thru in America"? by QSR Magazine and ranked #140 on Entrepreneur’s “2018 Franchise 500” list.

As of December 28, 2020, there are more than 834 Checkers and Rally’s locations. Breaking those numbers down further, Checkers has around 407 franchise locations and 135 corporate units. There are 161 Rally’s franchises and 131 corporate units.

The Checkers and Rally’s business model is fairly simple. The restaurants rely on their ability to serve as many customers as possible. They have a modular drive-thru restaurant design, which the brand says is versatile enough for almost any location. According to the brand’s franchising website, their drive-thru restaurants operate under a smaller footprint and their building layout offers compelling unit economics.

In order to meet customer demand, most Checkers and Rally’s locations only operate with a drive-thru, an e-commerce lane and a walk-up window. There are few with indoor dining available.

The brand’s franchise system is made up of many multi-unit franchisees. To get started, new franchise owners are assigned a real estate manager as well as a construction manager to help find and build in the best possible location. The brand also provides its franchisees with four weeks of restaurant training and marketing assistance to help scale the business. The process to open a Checkers or Rally’s from start to finish can take around six to 12 months.

According to Checkers and Rally’s 2022 Franchise Disclosure Document, the median annual sales for a Checkers restaurant was $1,039,773. The median annual sales of a Rally’s restaurant was $1,186,552.

The total investment necessary to open either a Checkers or Rally’s franchise ranges from $790,797 to $2,368,316, including a $30,000 franchise fee. Franchisees are required to pay a reoccurring 4% royalty fee and a 4.5% marketing fee.

The initial franchise fee for Checkers & Rally’s is $30,000. Liquid capital required is $250,000, and net worth required is $750,000.