Checkers & Rally’s Releases New Modular and Shipping Container Building Designs to Lower Investment, Accelerate Growth and Maximize ROI

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4.0 Design Model Includes Off-Site Built Modular and Environmentally Friendly Shipping Container Options

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Building on the momentum from the largest development pipeline in more than 20 years, Checkers & Rally’s continues to focus on driving even stronger franchisee profitability with the launch of a new and innovative growth strategy known as Checkers & Rally’s Model 4.0. Designed to provide a more streamlined, cost-effective and time-sensitive construction process for new buildouts, Checkers & Rally’s Model 4.0 allows franchisees to choose from three unique design plans when building their new freestanding restaurants: a traditional on-site build that has been value engineered, a new modular building (the iconic format that Checkers and Rally’s is famous for), or a new container building that utilizes reclaimed shipping containers as the structural supports for the innovative new design.

Both the modular and shipping container builds are projected to be faster to construct and less expensive than traditional builds, with potential average savings relative to traditional methods of up to $100,000 or more. These designs also save 5-12 weeks in the development timeline as the buildings are manufactured in controlled environments off-site.

“Checkers & Rally’s is growing extremely fast, and with hundreds of territories still available in major markets across the United States, we’re committed to providing both existing and new franchisees new restaurant growth options that are fast and efficient in order to maximize their profitability,” said Rick Silva, Chief Executive Officer of Checkers & Rally’s. “These are exciting times at Checkers and Rally’s. We’re not only growing at a record pace, we’re also innovating in order to better support and serve our franchisees. With the 4.0 design, we offer our franchisees a variety of freestanding building options that they can select from to best fit their specific site.”

With nearly 840 restaurants, and 250 additional locations in its pipeline, Checkers & Rally’s already boasts an impressive 45% average return on investment among its newly opened company owned locations . The brand’s laser-focus on growth and strong unit-level profitability have helped Checkers & Rally’s land a coveted spot on this year’s QSR Magazine’s Top 10 Franchise Deals along with the honor of being named a Top Food and Beverage Franchise by the Franchise Business Review. Model 4.0 is specifically designed to further capitalize on this incredible momentum and put additional focus on unit level economics.

“While our returns are compelling for franchisees, we are always looking for creative ways to reduce our buildout costs,” said Jennifer Durham, Chief Development Officer for Checkers & Rally’s. “Our new designs are projected to provide higher returns for our existing franchisees and make being part of our great brands even more attractive for potential new franchisees. Our new Checkers & Rally’s Model 4.0 should create price certainty and ease of development, reduce development schedules, and at the same time, boost ROI. We realized that a one-size-fits-all approach doesn’t always work. So, now we’re empowering our franchisees to choose the building format that makes the most sense for their site.”

Several franchisees have already signed up to open Model 4.0 Modular and Container options in successful markets like South Florida, Columbus, Los Angeles, Nashville, Tampa and Houston. In each market, Checkers and Rally’s development team supports franchisees to select the format that is best suited for their site. While ROI from a modular or shipping container buildout may be higher in most markets, others, with lower construction costs, may prove to be competitive or even cheaper via traditional onsite builds.

"The new 4.0 design options for freestanding restaurant building are modern, while keeping the iconic elements guests have come to expect from Checkers & Rally's,” said Checkers’ franchisee Angelo Freites, a former Wendy’s system franchisee who opened four Florida Checkers locations in 2015, and now plans to open one of the brand’s first 4.0 modular restaurants by the end of 2016. “This new design is extremely relevant to today's consumer while sustaining the heritage of the legacy brand."

In 2012, the brand introduced Checkers & Rally’s Model 3.0, which provided a contemporary approach to the brand’s quintessential retro image. Since then, Checkers & Rally’s has welcomed 176 new restaurants and 175 new franchisees. Now, as Checkers & Rally’s continues to expand from coast to coast, the brand plans to use its Model 4.0 to become an even bigger driver for franchise growth and enhanced ROI, for new and existing franchisees alike.

“One of our primary goals has and always will be unit-level profitability and strong returns,” Durham said. “To continue to make our franchise offering the most competitive in the industry, we will continue to bring innovations that differentiate Checkers & Rally’s from other brands in the QSR space. The introduction of Checkers & Rally’s Model 4.0 building design is just the latest way we have made our investment more efficient. The impact of our dedication is demonstrated in our rapid growth and our unparalleled return on investment. Most importantly, we are deeply invested in the success of each and every one of our franchisees.”

ABOUT CHECKERS & RALLY’S RESTAURANTS, INC.
Based in Tampa, Fla., Checkers & Rally's Restaurants, Inc., an iconic and innovative drive-thru restaurant chain known for its "Crazy Good Food," exceptional value and people-first attitude, operates and franchises both Checkers® and Rally's® restaurants. With almost 840 restaurants and room to grow, Checkers & Rally's is a proven brand with flexible building formats that is aggressively expanding across the country. Checkers & Rally's is a place where franchisees and employees who work hard can create opportunity for themselves, their families, and their communities. In recent years, the brand has been awarded several of the industry's most prestigious awards including: No. 1 Restaurant Franchise in Franchise Business Review’s Top 50 Multi-Unit Franchises for 2015, Top 500 by Entrepreneur Magazine, Best Drive-Thru in America by QSR Magazine and the Hot! Again award from Nation's Restaurant News. For more information about franchise opportunities with Checkers & Rally's, please visit http://www.checkersfranchising.com.

2016 Checkers & Rally’s Franchise Disclosure Document, Item 19

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Lauren Boukas
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