How Much Does a Checkers/Rally's Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$124K – $2.1M
Franchise Fee
$30K
Royalty
4.0%
Ad Fund
4.5%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Checkers/Rally's is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Checkers/Rally's franchise requires a total investment of $124K – $2.1M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $30K to $60K.
Ongoing Costs
Beyond the initial investment, Checkers/Rally's franchisees pay ongoing fees. The royalty fee is 4.0% of gross sales (Percentage of Net Sales). The advertising or brand fund contribution is 4.5% of gross sales. There is also a technology fee of $1K.
Net Worth & Liquid Capital Requirements
Checkers/Rally's requires working capital of $30K – $60K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Checkers/Rally's's Item 19 financial performance representation:
Median gross sales: $1.1M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Checkers/Rally's?
SBA Loans Issued
19
Default Rate
20.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Checkers/Rally's has 19 SBA-backed loans on record. The default rate is 20.0%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Checkers/Rally's franchise owners
Get verified franchisee phone numbers for due diligence
See full Checkers/Rally's research
Risk analysis, unit growth, contract terms, and more
Compare Checkers/Rally's to similar franchises
Side-by-side investment, revenue, and risk comparison