Checkers (Rally's in some markets) investment spans $96K–$1.5M depending on format. SBA 7(a) is the primary financing vehicle. Here's how lenders evaluate the double drive-through burger concept.
Checkers Drive-In Restaurants (Rally's in the Midwest and Western U.S.) is a double drive-through burger QSR chain with approximately 800 locations. The double drive-through format — no dine-in, two service lanes — is optimized for speed and high-volume throughput. Checkers offers both traditional ground-up builds and modular unit formats that can be installed on smaller or non-traditional sites. The modular option creates one of the wider investment range spreads in QSR franchising. This guide covers financing mechanics only.
Per the current FDD, total estimated initial investment runs $96K–$1.5M — the $96K floor reflects modular unit installations on leased sites; the $1.5M ceiling reflects full traditional ground-up construction with owned real estate. Lenders evaluate:
Checkers' two-format structure creates two very different loan conversations. Modular units ($96K–$400K range) are treated as personal property (not real estate) — they depreciate and carry different SBA collateral treatment than leasehold improvements. Traditional ground-up builds ($800K–$1.5M) are underwritten like standard QSR construction loans. Be explicit with the lender upfront about which format you're financing — mixing underwriting assumptions between formats is a common source of stalled applications.
The SBA 7(a) loan program is the primary financing vehicle for Checkers franchise acquisitions across the investment range. Checkers' listing on the SBA Franchise Directory allows lenders to bypass independent franchise agreement review. Key parameters:
The SBA 504 program applies when a Checkers franchisee acquires freestanding real estate as owner-occupied commercial property — relevant for traditional ground-up builds where the operator owns the site. Structure: 50% conventional bank + 40% SBA 504 debenture (long-term fixed rate) + 10% borrower equity. The combination of real estate ownership and SBA 504 can improve the capital structure for traditional-format Checkers builds at the higher end of the investment range.
Drive-through communication systems, commercial fryers, grill equipment, refrigeration, modular unit components (for modular builds), and POS technology are Checkers' primary equipment items. Equipment loans or leases can be layered on top of the primary SBA loan. Modular units themselves are sometimes financed partially as equipment — confirm how the lender and SBA classify the modular structure before finalizing the loan structure.
Checkers Drive-In Restaurants does not operate a direct in-house lending program for franchisees. The company has maintained preferred-lender relationships experienced in the Checkers/Rally's system, particularly for the modular unit format. Checkers has historically offered development incentives including reduced franchise fees and royalty deferrals in targeted expansion markets — the current FDD and Checkers development team are the authoritative sources for available programs.
Specific Checkers financial qualification thresholds are in the FDD. The modular unit format — with investment starting at $96K — is among the lowest-cost entry points for a nationally recognized drive-through burger franchise. On a $200K modular unit deal, the SBA equity injection is $20K–$40K from liquid funds. On a $1M+ traditional build, the injection requirement scales proportionally. Working capital reserves for the revenue ramp period are particularly important for new market entries where brand awareness may need time to build.
ClearValue Lending works with franchise operators at every stage — from first-unit acquisition to multi-unit expansion financing. Apply at Find my match. Your file routes to one matched lender in our network. Related: SBA 7(a) loans explained · SBA 504 loan explained.
Yes. Checkers Drive-In Restaurants is on the SBA Franchise Directory. SBA 7(a) can finance the portion above your equity injection, up to $5M — covering both modular unit and traditional build formats.
Checkers and Rally's are the same franchise system operating under different regional brand names. Checkers is the brand name used in the Southeast; Rally's is used in the Midwest and Western U.S. Both operate under Checkers Drive-In Restaurants, Inc. and share the same FDD and franchise agreement structure.
Modular unit format starting at $96K requires as little as $9.6K–$19.2K SBA equity injection. Traditional builds at $1M+ require $100K–$200K minimum from liquid funds. Specific thresholds are in the FDD — review Item 7 with your lender before applying.
Yes. Modular units are treated differently from traditional real estate construction by some lenders — the modular structure may be classified as equipment rather than real property, affecting collateral position and term structure. Confirm how your lender classifies the modular unit before finalizing the loan structure.
Expect 60–90 days from a completed SBA application to funding. Modular unit deals may process faster due to simpler collateral structure. Traditional ground-up builds with real estate add permitting and construction timelines.