Checkers Franchise Cost, Profit & Failure Rate 2024

As one of the leading franchises in the hospitality industry, Checkers Franchise offers business owners an opportunity to expand their businesses and increase profits.

This article will provide information regarding franchise fees, profit, total investment, training, restrictions, renewal policies, and return on investments associated with owning a Checkers Franchise.

With all the pertinent information provided in this article, readers can make an informed decision about investing in this type of franchise. Furthermore, we will discuss how to successfully manage a successful franchise with Checkers and offer insights into what makes these types of franchises so attractive and profitable for entrepreneurs.

So if you’re looking for more information on franchising opportunities through Checkers or are interested in learning more about the potential returns on investment, this article is the perfect place to start.

Checkers Franchise

About Checkers

Checkers Drive-In Restaurants has risen to the top of the fast-expanding QSR burger sector.

As a member of the Checkers community, you’ll gain access to this rich heritage, our extensive support network, and one of the company’s most advanced operating systems.

Checkers is apt for growth across the country, with brand recognition identification, solid franchisee partnerships, and a fantastic executive management team.


Checkers History

Jim Mattei created Checkers in 1986 in Mobile, Alabama, and the company went public in 1991. Jim Patterson began Rallies in 1985 in Louisville, Kentucky. Later it was taken by Maxie’s of America, Snapps Drive-Thru, and Zipps Drive-Thru in 1991 and 1992.

Checkers Drive-Up Restaurants Inc. dominated the fast-food hamburger business in the early 1990s with its unique black and white checkerboard squares bordered by bright red and chrome.

Moreover, Checkers’ large intensity double desire windows and low cost permitted it to quickly create a lot of different, vibrantly colored reconfigurable eateries across the southeastern United States.


Franchise Model Of Checkers

Cost Or FeesAmount
Investment$165,000 – $1,235,400
Franchise-Fee$30,000
Liquid Capital$250,000
Area RequirementN/A
IndustryRetailing
Total Outlets800

Checkers Revenue & Profit

Despite a small proportion, Checkers does not appear to be backpedaling. They’re growing rapidly and even changing the look of their business.

According to the corporation, food quality has also increased. Checkers have also developed a phone device and an incentive system to boost return customers.

The corporation also stated that its shipping sales had increased this year.

With all of the improvements Checkers is making to its facilities, technology, and menu, it’s easy to see sales growth over the next five years.

On average, a Checkers franchise makes $1,039,773 in sales per year.

On average, a Checkers franchise makes $249,545 in profits per year. This represents a 24% adjusted profit margin. This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1039773.00
Rent9.50%(98778.43)
Insurance4.75%(49389.22)
Salaries19.00%(197556.87)
Franchise Royalty Fees4.75%(49389.22)
Utilities1.90%(19755.69)
Cost of Goods Sold (COGS)23.75%(246946.09)
Labor (Variable)12.35%(128411.97)
Total (Expenses)76.00%(790227.48)
Net Profit24.00%249545.52

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Upgrades In Checkers

Upgrades In Checkers

Checkers is undergoing a huge transformation. They’re modernizing the entire network, which is visually stunning and includes all the new functionalities required in today’s world. New burger tastes are being introduced.

They also have reward-based subscription schemes. If your registration to become a franchisee is approved, you may be able to sample these brand-new Checkers just in time.


Double Drive-Through

Checkers is well-known for its two-drive-through approach. Your sales may grow due to the increased number of cars passing by the business store.

Drive-thru revenues are important for most fast-food companies. Drive-thru sales account for 70% of some stores’ gross revenue.

The potential to boost production above what is now accessible by adding an extra drive-thru window.


Payback Period Of Checkers

With a midpoint investment of $838,000 and an estimated 24% profit on the average net sales, which is $1,039,773., the yearly profit would be $249,545.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $838,000 / $249,545 = 3.35 years

Based on these figures, it will take approximately 3-4 years to pay back the initial investment for Checkers. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Checkers

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019460464+4
2020464421-43
2021421407-14

For the Franchised outlets:

  • In 2019, the growth rate was (4)/460×100≈0.86%
  • In 2020, the failure rate was (43)/464×100≈9.26%
  • In 2021, the failure rate was (14)/421×100≈3.32%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019125122-3
2020122134+12
2021134135+1

For the Company-Owned outlets:

  • In 2019, the failure rate was (3)/125×100≈2.4%
  • In 2020, the growth rate was (12)/122×100≈9.83%
  • In 2021, the growth rate was (1)/134×100≈0.74%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019585586+1
2020586555-31
2021555542-13

For Total outlets:

  • In 2019, the growth rate was (1)/585×100≈0.17%
  • In 2020, the failure rate was (31)/586×100≈5.29%
  • In 2021, the failure rate was (13)/555×100≈2.34%

According to the above-mentioned data, we can see that the franchised outlets for Checkers grew from 2019, showing a growth rate of 0.86%. The company then started to decline from 2020-2021, showing a failure rate between 9.26% and 3.32%.

On the other hand, for company-owned outlets, the failure rate of Checkers was 2.4% in 2019. Later, in 2020-2021, the company experienced growth, showing a growth rate between 9.83% and 0.74%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Checkers franchise has expanded in the year 2019, showing a total growth rate of 0.17%. However, in 2020-2021, the company started to decline, showing a failure rate between 5.29% and 2.34%.

Potential franchisees interested in restaurants can investigate opportunities with the Cafe Rio Franchise, Twin Peaks Franchise, Torchy’s Tacos Franchise, Siomai King Online Franchise, and Applebee’s Franchise.


Checkers Comparison

CompanyCheckersTaco Bell
Founded In19861970
Initial Investment$165,000 – $1,235,400$525,100 – $2,622,400
Franchise-Fee$30,000$25,000
Total Outlet8007,800
Annual Revenue$302.4 Million$2.03 Billion

Frequently Asked Question

What are the earnings of Checkers franchisees?

Franchisees of Checkers Drive-In Restaurants earn $84,000 per year or $40 per hour.

Why are Checkers also known as Rallys?

As per records, Checkers and Rally began as two separate fast-food businesses before merging into a single franchise.

Who is Checker's CEO?

Frances Allen is the CEO of Cherkers. He is a writer who lives in the United States.

Does Checkers offer franchising?

Yes, Checkers is a fast-food restaurant that offers lucrative franchise opportunities nationwide.

How much does a Checkers franchise cost?

Starting a Checkers franchise requires an initial investment of $165,000 – $1,235,400, with a franchise fee of $30,000.

Where is Checkers headquartered?

The headquarters of Checkers is located in Tampa, Florida.

How many locations does Checkers has?

There are currently 878 locations of Checkers. Among these, Checkers are 569, and Rally’s are 309.

Who founded Checkers?

Checkers was founded by Jim Mattei in 1986. The chain went public in 1991.

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