Checkers & Rally's Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($30,000)

‍The initial franchise fee for Checkers & Rally's is $30,000. This fee grants the franchisee the right to operate a single Checkers or Rally's restaurant under the terms and conditions of the franchise agreement.

Royalty Fee (4.5% of Net Sales)

‍Franchisees are required to pay a royalty fee of 4.5% of their net sales. This fee is for the continued use of the Checkers & Rally's brand, systems, and ongoing support provided by the franchisor.

Advertising Fee (Up to 4.5% of Net Sales)

‍Franchisees must contribute to the National Production Fund (NPF) amounts that are established by the franchisor from time to time, not to exceed 3% of Net Sales. These contributions are used for the creation and production of marketing materials and preparation of advertising campaigns.

Additionally, franchisees are required to spend on advertising and promoting their franchised restaurant. The total advertising expenditure, including contributions to the NPF and other advertising cooperatives, should not exceed 4.5% of Net Sales during each fiscal quarter.

Checkers & Rally's are committed to ensuring that their franchisees are well-equipped to maintain the brand's standards and serve their customers effectively. Here's a closer look at their training approach:

Initial Training:

• As part of their onboarding process, franchisees are introduced to the Checkers & Rally's system, which encompasses the brand's business methods, designs, equipment, ingredients, recipes, methods of preparation, and other operational standards.
• This training is designed to provide franchisees with a comprehensive understanding of how to operate a Checkers & Rally's restaurant, ensuring consistency across all locations.

Training Supervision and Materials:

• The training is overseen by experienced professionals to ensure that it aligns with the brand's standards and imparts practical knowledge.
• Franchisees are provided with a range of instructional materials, including production manuals, online training modules, and other written materials tailored for the initial training program.

Franchisees are granted the right to own and operate a Restaurant at a specific location. If a location for the Restaurant has not been agreed upon prior to signing the Franchise Agreement, franchisees must select a location within a designated area, known as the "Designated Area."

The Designated Area is appointed solely for site selection and does not confer any territorial exclusivity or protection to the franchisees. Additionally, franchisees may receive a territory with limited protected rights, referred to as a "Protected Area."

During the term of the Franchise Agreement, Checkers & Rally's will not establish or operate, nor license any other person to establish or operate, a Restaurant within this Protected Area. However, there are no restrictions on Checkers & Rally's from soliciting or accepting orders from customers using the Marks or any other trademarks.

Franchisees of Checkers & Rally's are expected to exert their full-time and best efforts to the development and operation of the Franchised Restaurant. If the franchisee is an entity, an "Operating Partner" must be designated.

This Operating Partner should have the authority to make operational decisions regarding the Franchised Restaurant and must complete the company's training program to its satisfaction.

The franchisee or the Operating Partner cannot engage in any other business or activity that requires substantial management responsibility or conflicts with their obligations under the Franchise Agreement.

Furthermore, the Franchised Restaurant must always be under the direct, on-premises supervision of either the franchisee, the Operating Partner, or a manager who has successfully completed the company's training program.