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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.
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MINIMUM FINANCIAL REQUIREMENTS?
$750,000 minimum net worth of which $250,000 is liquid per location.
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FRANCHISE FEE?
$30,000 per location ($10,000 deposit per location at signing of Development Agreement).
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FRANCHISE AGREEMENT TERMS?
20 year term.
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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).
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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.
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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