Krystal Restaurants vs Checkers Drive-In Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Krystal Restaurants vs Checkers Drive-In including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
	Krystal Restaurants Franchise	Checkers Drive-In Franchise
Investment	$900,000 - $1,300,000	$259,000 - $1,431,000
Franchise Fee	$32,500	$30,000
Royalty Fee	4.5%	4%
Advertising Fee	-	4.5%
Year Founded	1932	1986
Year Franchised	1990	1989
Term Of Agreement	20 years	20 years
Term Of Agreement	20 years	20 years
Renewal Fee	$8.1K	-
Business Experience Requirements
	Krystal Restaurants Franchise	Checkers Drive-In Franchise
Experience	Industry experience General business experience	Industry experience General business experience
Financing Options
	Krystal Restaurants Franchise	Checkers Drive-In Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	No/No	No/Yes
Start-up Costs	No/Yes	No/Yes
Equipment	No/Yes	No/Yes
Inventory	No/Yes	No/Yes
Receivables	No/No	No/Yes
Payroll	No/No	No/Yes
Training & Support
	Krystal Restaurants Franchise	Checkers Drive-In Franchise
Training	-	On-The-Job Training: 160-220 hours Classroom Training: 32-40 hours Additional Training: In training restaurant
Support	Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives	Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection
Marketing	Co-op advertising, Ad slicks, Regional advertising	Co-op advertising, Ad slicks, National media, Regional advertising
Operations	Franchisees required to buy multiple units/master licenses; 94% of all franchisees own more than one unit Number of employees needed to run franchised unit: 30 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)	-
Expansion Plans
	Krystal Restaurants Franchise	Checkers Drive-In Franchise
US Expansion	Yes	Yes
Canada Expansion	No	No
International Expansion	No	Yes

Company Overviews

About Krystal Restaurants

The Krystal Company is the oldest quick service restaurant chain in the South and the second oldest in the United States. The Chattanooga-based company currently has more than 450 restaurants in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Founded in 1932, Krystal restaurants have become more than sparkling-clean eateries where friendly employees serve up fresh, delicious food. Krystal has become a cultural icon and an experience that virtually every man, woman and child in the South has shared. Nearly everyone in the region has a Krystal memory. The Krystal brand, and the great food, service, value and setting which it represents, has taken a prominent place in the South's cultural landscape.

About Checkers Drive-In

Checkers Drive-In Restaurants, Inc. is the largest double drive-thru restaurant chain in the United States. Checkers develops, produces, owns, operates, and franchises quick service “double drive-thru” restaurants under the two brand names “Checkers" and “Rally’s Hamburgers". The restaurants are designed to provide fast and efficient automobile-oriented service and appeal to guests of all ages. The double drive-thru concept allows Checkers' and Rally’s Hamburgers to capitalize on the fact that approximately fifty percent of all quick-service food business is drive-thru. Guests can also enjoy a 1950’s flashback with walk-up ordering and outdoor dining in the outside picnic area at most locations.

The total investment necessary to begin operation of a Checkers Restaurant (excluding real estate and related costs) is: $780,000 to $1,431,000 for a new modular design single drive-thru restaurant; $320,500 to $787,000 for a site built, conversion or used modular drive-thru restaurant; $259,700 to $648,000 for an endcap strip-center and gas/convenience restaurant; and $254,000 to $514,000 for a Non-Traditional, Walmart or in-line restaurant in a high-density market. This includes $10,000 to $50,000 that must be paid to the franchisor or an affiliate, plus $10,000 for each additional restaurant that you agree to develop under a development agreement.