Checkers Drive-In Restaurants / Rally's Restaurants

The system has declined 3.3% in the past year (26 units closed). What specific market conditions or operational changes contributed to this contraction, and what is the franchisor's strategy to stabilize or grow unit count?

Why does the non-compete clause restrict franchisees to only 3 miles when the typical range for quick service restaurants is 5.0-10.0 miles, and how does this potentially affect franchisor protection?

Your royalty rate of 4.0% is below the 5.0-6.0% typical range for this category. What specific value or cost savings justify this lower rate, and are there any plans to adjust it in the future?

The transfer fee of 20,000 is significantly higher than the typical range of 5,000-15,000. How is this fee justified, and what does it cover in the transfer process?

With an initial term of 20 years (versus 10-15 typical) and a total potential term of 40 years, what specific benchmarks or renewal conditions must franchisees meet to secure the 20-year renewal option?

Can you provide details on the 1 pending litigation case and the 2 cases initiated against the franchisor, including their nature, current status, and any impact on franchise operations?

What percentage of the 59 unit closures in 2023 were due to franchisee financial difficulty versus market conditions, and how did the franchisor support struggling franchisees during this period?

The renewal fee is 50% of the then-current initial franchise fee according to the agreement. If initial fees have increased over time, how does this impact renewal affordability for long-term franchisees?

The franchise agreement requires binding individual arbitration and prohibits class actions. How many franchisee disputes have been resolved through arbitration in the past 3 years, and what were the primary dispute categories?

With a termination rate of 0%, does this mean no franchisees have been terminated for material breaches, or does the franchisor pursue alternative remedies such as buybacks or receiverships?

The agreement includes 12 non-curable defaults. Can you provide specific examples of what constitutes a non-curable default that would result in immediate termination without a cure period?

How does the franchisor's approved supplier program work, and what is the typical cost differential between franchisor-approved suppliers and competitive alternatives?

The System Health score of 42/100 is below the typical range for this category. What specific metrics or operational gaps drive this lower score, and what corrective actions are underway?

Can you clarify whether the 5-year fee projections are available, and if not, provide a breakdown of projected costs for a franchisee opening a new location today?

Territory is protected but not exclusive. Can the franchisor or other franchisees open new units within your territory, and are there any minimum distance requirements between units?

What support or training is provided during the critical first 12 months, given that the Support & Training score is 100/100, and how does this compare to your competitor experience?

The franchise agreement requires personal guarantees with joint and several liability. Are spouses or business partners required to personally guarantee the agreement, and what specific liabilities are covered?

Transfer activity has declined from 37 transfers in 2022 to only 9 in 2024. Does this reflect stricter franchisor approval of transfers, lack of buyer interest, or changes in the agreement requirements?

With median gross sales of 1,076,326, what is the typical operating profit margin, and what percentage of franchisees achieve or exceed these sales figures?

Can you provide a breakdown of the 43 closures in 2024 by unit age, location type (drive-through vs. traditional), and stated reason for closure (franchisee decision vs. franchisor recommendation)?