Multi-Restaurant Area Development Agreements (ADA)

Checkers/Rally's Area Development Agreements are designed for our franchisees who desire to develop more than one restaurant. We have found that grouping or clustering multiple restaurants within a certain geographic area through an ADA is the best way to enable franchisees to enhance their operations and controls and meet their business objectives.

Our ADAs are five-year contracts that provide an opening schedule for each proposed restaurant. We craft our ADAs by identifying targeted trade areas in which the franchisee has elected to grow. The number of targeted trade areas provided within the ADA will exceed the number of restaurants required to be open, because we recognize that not all trade areas will necessarily have the real estate available during the term of the agreement.

The number of restaurants within an ADA can vary. It can be as few as two in our designated Mature Markets.

ADAs for designated Growth Markets will, on average, be from three to five restaurants.

In New Markets, we may ask franchisees to develop five to ten new restaurants.

Checkers/Rally's Area Development program is built to give franchisees incentives for opening multiple restaurants by offering a reduction in the Initial Franchise Fee required for each new restaurant. For example, an ADA for three restaurants would require a standard $30,000 for the first restaurant, $25,000 for the second, and $20,000 for the third restaurant. Any new restaurant exceeding your contractual obligations and opened within the term of ADA and in the designated territory would have a reduction in the Initial Franchise Fee to $15,000.

At the time you sign your Area Development Agreement you will be expected to pay a deposit of $5,000 for each restaurant contracted to open. The balance of the franchise fee is to be paid approximately two weeks prior to each restaurant opening.

Interested in learning more about becoming a Checkers/Rally's franchisee? Then begin the process now by Applying Online.