Checkers and Rally’s Restaurant Franchise
Checkers and Rally’s are drive in restaurant franchises that were founded in Mobile Alabama in 1986 as Checkers and in Jeffersonville, Indiana as Rally’s. They merged in 1999 and joined forces to run the 815 different locations they currently have across 28 states. They also operate in Israel and the American Samoa. They are the largest chain of double drive-thru restaurants in the United States and they went private through a merger with Taxi Holdings Corporation in 2006. The headquarters is currently in Tampa, Florida and they serve many areas across the South and Midwest mainly. Checkers was founded by Michael Landrum and went public in 1991. Rally’s was actually owned by CKE Restaurants, the parent company of Carl’s JR from 1996 to 1999 and the original Checkers was actually a speakeasy.
Both Checkers and Rally’s are known for serving hamburgers, hot dogs, fries, and milkshakes from a double drive through restaurant that is known for fast service. They now serve a variety of chicken and fish sandwiches along with many seasonal burgers and the same fries they originally started with. The popularity is from the speed of service and the unique concept of having two drive thru windows with no inside seating.
The Checkers and Rally’s restaurant franchise opportunity requires a $750,000 net worth minimum and a $250,000 liquid asset minimum. They charge a $30,000 franchise fee per restaurant and the total initial investment ranges from $611,000 to $682,000. They also ask for a 4% royalty fee on the net sales and a 0.375% contribution of the net sales to the National Production Fund. It is also required that the franchisee spend at least 5% of the net sales on advertising locally and nationally. The last requirement they have is a 4 week training course that every franchise has to take in order to be approved.