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?
$165,000 – $1,235,000* - range based on various building formats and excludes real estate. The average initial investment is $409,610. (A breakdown of costs can be found in Item 7 of the 2014 Franchise Disclosure Document (FDD)).
* Initial investment range based on various building formats and excludes real estate. Per Item 7 in 2014 Checkers Franchise Disclosure Document.
AVERAGE UNIT VOLUME?
Item 19 of the 2014 Franchise Disclosure Document (FDD): Statements of Average Net Sales for the 52 week period ending December 30, 2013. (Based on new restaurants per their first year of operations.)
Corporate Franchise Total Checkers $1,124,621 $1,021,578 $1,024,798** Rally's $1,151,837 $1,037,248 $1,065,895
** Average net volume for new restaurants per their first year of operations. Per Item 19 of the 2014 Checkers Franchise Disclosure Document.
NUMBER OF UNITS?
Item 20 of the 2014 Franchise Disclosure Document (FDD) as of December 30, 2013.
Corporate Franchise Total Checkers 184 314 498 Rally's 148 136 284 782
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
- Opening Advertising - $10,000 used to conduct grand opening advertising and promotion program (paid at time of signing the Franchise Agreement)