McDonald's vs Rally's Hamburgers Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McDonald's vs Rally's Hamburgers including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
McDonald's Franchise
Rally's Hamburgers Franchise
Investment $1,314,500 - $2,306,500$254,000 - $1,431,000
Franchise Fee $45,000$30,000
Royalty Fee 4%4%
Advertising Fee 4%+4.5%
Year Founded 19551985
Year Franchised 19550
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
Rally's Hamburgers Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• -

    Financing Options
     
    McDonald's Franchise
    Rally's Hamburgers Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/No-/-
    Start-up Costs No/No-/-
    Equipment No/Yes-/-
    Inventory No/No-/-
    Receivables No/No-/-
    Payroll No/No-/-

    Training & Support
     
    McDonald's Franchise
    Rally's Hamburgers Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant -
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software -
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app -
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		-

    Expansion Plans
     
    McDonald's Franchise
    Rally's Hamburgers Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion Yes-

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021










    About Rally's Hamburgers

    As one of the country’s most recognized brands, Checkers & Rally's is an industry leader with over 30 years of experience and more than 800 restaurants. Our guests' love for our bold flavored and seared burgers, indulgent milkshakes, and Famous Seasoned Fries is driving us to expand in new cities and develop in existing markets across the country. We continue to accelerate with unprecedented growth. Because we put our franchisees first, you can enjoy a business made to last. Come grow with us and learn how we’ve got our franchisees back!

    The total investment necessary to begin operation of a Rallys 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.

    ""     "Top

    #11 in Gator's Top franchises.
    In Franchise Business Reviews Top 200.