What is included in the labor and benefit costs for new Checkersrallys restaurants?

According to Checkersrallys's 2025 Franchise Disclosure Document, the labor and benefit costs for new restaurants include several components. Specifically, these costs encompass wages, bonuses, payroll taxes, workers' compensation, medical insurance, and other benefits provided to employees.

For a prospective Checkersrallys franchisee, understanding these costs is crucial for accurate financial planning. Labor and benefit costs can represent a significant portion of a restaurant's operating expenses. The FDD indicates that for new company-owned Checkers and Rally's restaurants, labor and benefit costs accounted for 30% of net sales, averaging $361,139. This figure is based on data from two company-owned restaurants during their first full 13 periods of operation.

It's important to note that these figures are averages from a limited sample of company-owned restaurants and may not directly reflect the costs a franchisee will incur. Factors such as local wage rates, the availability and cost of medical insurance, and the specific benefits package offered can significantly impact these expenses. Franchisees should conduct thorough market research and consult with experienced business advisors to develop realistic labor and benefit cost projections for their specific location.

While the FDD provides a general overview of labor and benefit costs, prospective franchisees should seek additional information from Checkersrallys regarding typical staffing levels, recommended wage scales, and benefit plan options. Understanding these details will enable franchisees to create a comprehensive budget and manage their labor expenses effectively.