Taco Palace vs Checkers Drive-In Franchise Comparison

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

Start-Up Costs and Fees
	Taco Palace Franchise	Checkers Drive-In Franchise
Investment	$53,200 - $133,100	$259,000 - $1,431,000
Franchise Fee	$33,950	$30,000
Royalty Fee	0-4%	4%
Advertising Fee	-	4.5%
Year Founded	1985	1986
Year Franchised	1996	1989
Term Of Agreement	1 year+	20 years
Term Of Agreement	1 year+	20 years
Renewal Fee	-	-
Business Experience Requirements
	Taco Palace Franchise	Checkers Drive-In Franchise
Experience	General business experience	Industry experience General business experience
Financing Options
	Taco Palace Franchise	Checkers Drive-In Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	No/No	No/Yes
Start-up Costs	No/No	No/Yes
Equipment	No/No	No/Yes
Inventory	No/No	No/Yes
Receivables	No/No	No/Yes
Payroll	No/No	No/Yes
Training & Support
	Taco Palace Franchise	Checkers Drive-In Franchise
Training	-	On-The-Job Training: 160-220 hours Classroom Training: 32-40 hours Additional Training: In training restaurant
Support	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	Ad slicks	Co-op advertising, Ad slicks, National media, Regional advertising
Operations	0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators)	-
Expansion Plans
	Taco Palace Franchise	Checkers Drive-In Franchise
US Expansion	-	Yes
Canada Expansion	No	No
International Expansion	Yes	Yes

Company Overviews

About Taco Palace

Husband-and-wife team Larry and Sandi Faria bought Taco Palace from Kirk Davison in 1985. The Farias had previously owned a pair of Chevron Oil Co. franchises and brought to Taco Palace 16 years of franchise experience. In developing Taco Palace's franchise program, the Farias were driven by the goal to develop a franchisee-friendly system. Taco Palace franchisees are not required to pay a franchise fee and are strongly encouraged to rent or lease an existing building and then dress it up, rather than construct a new one, a practice that helps to lessen start-up costs. The privately held company is headquartered in Monett, Missouri, and has a co-branding relationship with Kentucky Fried Chicken.

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.