WHAT'S THE DIFFERENCE BETWEEN CHECKERS DRIVE-IN RESTAURANTS AND RALLY'S HAMBURGER?
Checkers acquired Rally's in 1999, where Rally's was predominate in the market the Rally's branding was kept. Checkers & Rally's have the same menu items and serve the same exact food provided by the same distributors. Support for both brands is provided by the Restaurant Support Center in Tampa.
MINIMUM FINANCIAL REQUIREMENTS?
$750,000 minimum net worth of which $250,000 is liquid per location.
$30,000 per location ($10,000 deposit per location at signing of Development Agreement).
FRANCHISE AGREEMENT TERMS?
20 year term.
ESTIMATED INITIAL INVESTMENT?
$239,000 – $825,000 excluding real estate (A breakdown of costs can be found in Item 7 of the Franchise Disclosure Document (FDD).
AVERAGE UNIT VOLUME?
Item 19 of the Franchise Disclosure Document: Statements of Average Net Sales of Checkers Restaurants for the 52-Week Period Ending January 2, 2011
Corporate Franchise Total Checkers $925,303 $881,218 $897,568 Rally's $825,259 $732,791 $772,643
Checkers restaurants in the Northeast, Mid-Atlantic region have average unit volumes of:
Corporate Franchise Total Checkers $1,210,317 $1,104,441 $1,118,644*Note: there are no Rally's restaurants in this area
NUMBER OF UNITS?
Item 20 of the Franchise Disclosure Document (FDD) as of Dec 28, 2010
Corporate Franchise Total Checkers 167 330 498 Rally's 129 170 299 797
AVERAGE LENGTH OF TIME TO DEVELOP?
Estimated 6 to 12 months, dependent on site type, permits and construction.
ROYALTY AND ADVERTISING FEES?
- Royalty 4% of net sales
- National Production Fund Contributions – 0.375% of net sales
- Total Advertising Expenditure Requirement – up to 5% of net sales
- Marketing Cooperative (Coop) Fees – determined by individual Designated Marketing Area (DMA) Coops