What are some reasons Checkersrallys restaurants were open for less than 350 days during the 2024 fiscal year?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Table A comprises Net Sales information for the 61 franchised Checkers Restaurants, 5 company-owned Checkers Restaurants, 15 franchised Rally's Restaurants and 3 companyowned Rally's Restaurants that were open and operating for less than 350 during the 2024 Fiscal Year. These restaurants were not open for 350 or more days because they were: (i) temporarily closed for remodeling; (ii) temporarily closed because of hurricane; (iii) temporarily closed for other issues (e.g., fire, staffing issues or supply chain disruption); (iv) closed permanently at some point during the 2024 Fiscal Year; or (v) opened for business after the start of 2024 Fiscal Year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 71–77)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, some restaurants did not operate for at least 350 days during the 2024 fiscal year for a variety of reasons. These reasons are applicable to both franchised and company-owned locations. Understanding these potential disruptions is crucial for prospective franchisees as it directly impacts potential revenue and operational planning.
The reasons for closures include temporary closures for remodeling, closures due to hurricanes, and closures due to other issues such as fire, staffing problems, or supply chain disruptions. These events can cause significant interruptions in business operations and may require franchisees to have contingency plans in place to mitigate potential losses.
Additionally, some restaurants were not open for the full year because they were permanently closed at some point during the 2024 fiscal year, or they opened for business after the fiscal year had already begun. These factors highlight the importance of location selection, business management, and the overall economic environment in determining the success and longevity of a Checkersrallys franchise. Prospective franchisees should carefully consider these potential risks and evaluate their ability to manage and overcome such challenges.