FDD ITEM 20 · FISCAL 2021–2023
CHECKERS RESTAURANT OR RALLY'S RESTAURANT Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2023), CHECKERS RESTAURANT OR RALLY'S RESTAURANT reported 547 franchised outlets at year end. 60 of 585 franchised outlets open at the start of the year left the system — an annualized exit rate of 10.3%— while 22 new outlets opened. Systemwide units moved -7.2% over 2021–2023.
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 858 | 846 | 840 |
| Opened | 10 | 39 | 22 |
| Transfers | 66 | 37 | 33 |
| Terminations | 23 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 2 | 29 | 60 |
| Outlets at end | 846 | 840 | 785 |
| Net change | -12 | -6 | -55 |
0 terminations + 0 non-renewals + 60 ceased (other) = 60 exits ÷ 585 at start = 10.3%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (33) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing CHECKERS RESTAURANT OR RALLY'S RESTAURANT's numbers, including talking you out of a bad deal.
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