Business Overview

These stores are good performers with a solid history. Busy, urban locations. 2 Area managers in place and may be available to work with new buyer.
Headquartered in Tampa, FL, Checkers was founded in 1986 and now boasts over 577 units nationwide. Checkers acquired Rally’s in 1999. The two chains combine to make one of the fastest growing restaurants in the industry with more than 800 locations across the country. Known for their bold flavored and seared burgers, indulgent milkshakes, and Famous Seasoned Fries.

Financial

  • Asking Price: $2,500,000
  • Cash Flow: $791,927
  • Gross Revenue: $10,830,240
  • EBITDA: $791,927
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

All FF&E to be in good working condition prior to change over. No remodels due but equipment upgrades may be required.

Is Support & Training Included:

Franchisor offers 5 weeks of training

Purpose For Selling:

Other business interests

Pros and Cons:

Busy, urban locations. Close to major Chicagoland freeways. Checkers/Rally's value oriented menu and double drive-thru model makes it a recession hardy and covid ready QSR. There is plenty of competition in the QSR segment but these stores are well established and thriving.

Opportunities and Growth:

Growth in brand via new development or acquisition of existing units.

Established Franchise:

This Business Is An Established Franchise

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. However, the real reason and the one they say to you might be 2 entirely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of other factors. This is why it is very crucial that you not depend entirely on a seller's word, yet rather, make use of the vendor's response together with your overall due diligence. This will paint a more reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too thin. Many organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in new customers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day earnings. Particular variables such as brand-new competitors growing up around the location, roadway building and construction, as well as employee turn over can influence repeat consumers and also negatively affect future revenues. One essential point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the greater the possibility to construct a returning client base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Exactly how might the regional average household income influence future earnings potential?