Checkers
Food & Beverage · Quick-Service Restaurants
- Royalty
- 4.0%
of weekly Net Sales
About Checkers
Checkers, officially known as Checkers Drive-In Restaurants Inc., is an American fast-food chain specializing in hamburgers, hot dogs, french fries, and milkshakes. The company operates primarily in the United States. Checkers was founded in 1986 in Mobile, Alabama, by James E. Mattei. It initially operated under the name Checkers and Rally's after a merger between Checkers and Rally's Hamburgers in 1999. However, in 2017, the company rebranded as Checkers Drive-In Restaurants Inc. Headquartered in Tampa, Florida, Checkers operates approximately 840 restaurants across 28 states and the District of Columbia. The company's corporate headquarters are located in Tampa, where it manages marketing, operations, and support functions for its franchisees. Checkers primarily offers drive-thru and walk-up services, although some locations also feature limited indoor seating. The menu includes classic American fast-food items such as hamburgers, chicken sandwiches, hot dogs, french fries, and milkshakes. The company prides itself on its extensive menu, customized to suit regional tastes and preferences. While primarily focused on the domestic market, Checkers has expanded its operations internationally through franchising. Notably, the company has restaurants in The Bahamas, Curaçao, and Indonesia. These international locations are franchised and operated by local partners. In terms of market position, Checkers is one of the largest chains of double drive-thru restaurants in the United States, known for its value-priced menu items. It competes with other fast-food chains like McDonald's, Burger King, and Wendy's. Checkers' affordable prices and focus on convenience have helped it establish a strong presence, particularly in urban and suburban areas. In recent years, Checkers has focused on expansion and innovation. In 2021, the company announced plans to open new locations, targeting markets with high growth potential. Additionally, Checkers continuously updates its menu, introducing new limited-time offers and promotions to cater to changing consumer preferences. As of the current status, Checkers continues to operate and expand its restaurant network. The company constantly evolves to meet customers' needs, remaining a notable player in the fast-food industry.
Key terms
- Franchise fee
$30k
- 2024 Growth Incentive
50% reduced initial franchise fee for third and subsequent Restaurants if multi-unit signing/opening and Net Positive criteria are met.
- Existing Franchisee Incentive
$10,000 reduction; initial franchise fee $20,000 for eligible existing franchisees who open within 18 months.
- Women Business Owner Incentive
Initial franchise fee reduced to $0 (100% reduction) for first Franchise Agreement with ≥51% female ownership.
- Non-Traditional Site Addendum
Initial franchise fee reduced to $15,000 for Non-Traditional Sites; also reduced royalty and potential co-op reduction.
- Brand fund
3.0% of Net Sales
- Local advertising
4.5% of Net Sales
- Footprint
700 – 3,500 sq ft
- Development Agreement
$10k
- Veteran discount
100.0% off franchise fee — Vet Fran Incentive: first Franchise Agreement initial franchise fee reduced to $0 (100% reduction) with qualifying ownership and documentation.
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations166
Franchised units open at year-end
- New openings5
Gross new units opened during the calendar year
- 1-year unit growth rate-2.9%
Net unit growth versus prior year
- 3-year unit CAGR-1.2%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio5.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$1.1M
Using franchised restaurants’ average net sales as proxy for average annual revenue.
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.1M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open20 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate4.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio1.1×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.