From the filings

HQ-led decisions

Rally's

Quick service restaurant

Rally's 2025 FDD requires the Aloha POS system (version 19 or higher), an integrated restaurant management system owned by Xenial, Inc., and a firewall system from one of the franchisor's preferred vendors; franchisees who join the optional Order Ahead Program must use Olo. Alvaro DePalleja (Chief Restaurant Officer) is the named executive over the restaurant operations this stack runs.

For software vendors selling into US franchise brands.

Live signals

Total units
484
362 franchised
Unit growth YoY
-4.485%
vs prior filing
AUV
$1.10M
Item 19, 2024
Royalty
4%
of gross sales
Ad fund
2.65%
national + local
Initial fee
$30K
per unit
Investment range
$116K–$2.19M
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.

6.65%of gross sales (FY2025)

Ongoing fees: 6.65% of gross sales (FY2025)Royalty 4%, Ad fund 2.65%. Total 6.65% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 4%Ad fund 2.65%

Mandated & recommended tech

The systems vendors compete with

4 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.

AlohaNCR Voyix
Mandatory
POSItem 11

e deem necessary to protect our interests, and you agree to pay such license, training, and maintenance fee as we deem reasonably appropriate. Currently, we require you to use the Aloha POS system (ve

NCR AlohaNCR Voyix
Mandatory
POSItem 11

ging from $190 to $370 for ongoing costs, which includes costs related to the Aloha Command and Configuration Center ($90) and Menu Management services ($95). If you choose to use Aloha’s Connected Pa

OloOlo
Mandatory
DeliveryItem 8

er Ahead Program, you must only offer the Order Ahead Products we authorize and use the service providers that we appoint. Currently, we require that you use our preferred vendor, Olo, if you enter th

XenialGlobal Payments
Mandatory
POSItem 11

tenance fee as we deem reasonably appropriate. Currently, we require you to use the Aloha POS system (version 19 or higher) and an integrated restaurant management system owned by Xenial, Inc. (“Xenia

Franchisor behaviours

What the franchisor requires

27 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 5 questions the text does not settle, which is not a no.

Accounting

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We will have independent access to the data generated by your computer-based cash registers and there are no contractual limits on our access to your data.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

You must furnish us: (a) no later than the fifth (5th) day following the end of each Bi-weekly Period, a report of Net Sales for such Bi- weekly Period; (b) no later than the fifteenth (15th) day following the end of each calendar month, an income statement and statement of cash flow for the Franchised Restaurant for…

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Item 8

Currently, we are not an approved supplier for any items except that we may from time to time sell used modular restaurants and restaurant equipment to Checkers and Rally’s franchisees.

Is there a franchisee advisory council, association or committee?

Yes

Item 20

The Checkers and Rally’s franchise systems have a Checkers/Rally’s Franchise Advisory Council that we established and help support.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 8

We may modify the list of approved brands and/or suppliers.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

6189551

Item 8

Our total revenues for the fiscal year which ended December 30, 2024 were $300,381,238 of which $6,189,551 or 2.1% were revenues from required purchases and leases of products and services by franchisees.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

Suppliers may pay us rebates or allowances based on purchases by Checkers and Rally’s franchisees and by us for our company-owned Checkers Restaurants and Rally’s Restaurants.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

95

Item 8

We estimate the ongoing cost of these required purchases and leases to be in excess of 95% of your total ongoing operating expenses.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Franchise agreement

We may impose reasonable inspection and supervision fees on you to cover our costs associated with evaluating any proposed supplier or item you request us to consider approving for use by the Franchised Restaurant or the System.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Franchise agreement

If you propose to use any brand and/or supplier which is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier…

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

notify the telephone company and all telephone directory publishers of the termination or expiration of your right to use any telephone number and any regular, classified or other telephone directory listings associated with any Mark and to authorize transfer of the number to us or at our direction

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Franchise agreement

You agree to abide by (i) the Payment Card Industry (“PCI”) Data Security Standards enacted by the applicable Card Associations (as they may be modified at any time and from time to time or as successor standards are adopted); and (ii) all other security standards and guidelines that may be published at any time and…

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

We and our designated agents have the right at any reasonable time and without prior notice to: (a) inspect the Franchised Restaurant; (b) observe, photograph, audio-tape and/or video tape the operations of the Franchised Restaurant;

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Item 8

The "Operations Manual” is our confidential operations manual, as we may amend at any time, which may consist of one or more manuals or communications, containing our mandatory and suggested standards, specifications and operating procedures relating to the development and operation of Restaurants and other…

Must the franchisor approve the franchisee's site or location before opening?

Yes

Franchise agreement

You agree to obtain our written approval of the Franchised Restaurant’s proposed site before signing any lease, sublease, or other document for the site.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Franchise agreement

You may not establish or maintain any social media sites utilizing any user names, or otherwise associating with the Marks, without our advance written consent.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

If your contributions to the NPF and, if applicable, your local and regional advertising cooperative are less than 4.5% of Net Sales on a monthly basis, you must spend an amount equal to the difference between 4.5% of your Net Sales and the amounts you contributed to the NPF and your local and regional advertising…

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Item 8

You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, and affinity cards for Restaurants and participate in, and comply with the requirements of, our gift card and other customer loyalty, affinity, and similar programs.

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Item 11

You must participate in such advertising cooperatives and its programs (other than price advertising, as to which you may choose not to participate) and abide by its by-laws.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 8

You must purchase or lease approved types, brands, or models of fixtures, furniture, equipment, signs and supplies only from suppliers we approve.

Must equipment be purchased from designated or approved suppliers?

Yes

Item 8

You must purchase or lease approved types, brands, or models of fixtures, furniture, equipment, signs and supplies only from suppliers we approve.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Franchise agreement

You agree, at our request, to sign an electronic payment authorization agreement in a form we prescribe that authorizes us to automatically debit your bank account, on the dates payments are due, for any royalty fees, rents, the Initial Advertising Deposit and other amounts due and owing under this Agreement and any…

Must the franchisee participate in a gift card program?

Yes

Item 8

You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, and affinity cards for Restaurants and participate in, and comply with the requirements of, our gift card and other customer loyalty, affinity, and similar programs.

People

Must employees wear uniforms specified by the franchisor?

Yes

Item 8

You will use in the development and operation of the Franchised Restaurant and/or offer for sale at the Franchised Restaurant only food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares and other supplies and other products and services that conform to our…

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

Currently, we require you to use the Aloha POS system (version 19 or higher) and an integrated restaurant management system owned by Xenial, Inc. (“Xenial”).

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

We will have independent access to the data generated by your computer-based cash registers and there are no contractual limits on our access to your data.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 11

We may charge fees for additional attendees and for you and your personnel attending any additional training programs, whether optional or mandatory.

The filing answers no to 2 questions
  • Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Item 8
  • Is a minimum grand opening advertising spend required?Item 11

Who buys here

The buyer at this brand

The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.

Sales LeaderRegional 100 499

HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.

VP SalesHead of SalesCROSales Director
  1. 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
  2. 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
  3. Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.

The vendor opportunity at Rally's

Royalty runs 4.0% of net sales on a 20-year initial term, and Item 19 makes a financial performance representation. Rally's is part of Checkers Drive-In Restaurants, its sibling brand. The system's 254 mapped operators concentrate in Georgia (48), New York (45), Michigan (38), California (32), and Florida (31).

Who controls software purchasing

Item 11's POS mandate is set at the franchisor level. The FDD names Chris Tebben (CEO and President), Michael Blair (Chief Strategy Officer and CFO), Alvaro DePalleja (Chief Restaurant Officer), Scott Johnson (CMO), and Stephen A. Messer (General Counsel and VP) among its officers.

Tech named in the FDD, and what is actually required

Rally's requires the Aloha POS system (version 19 or higher), an integrated restaurant management system owned by Xenial, Inc., a firewall system from one of its preferred vendors, and a Point-to-Point encryption credit card processing service; franchisees who join the optional Order Ahead Program must contract with Olo. Franchisees may sign a separate IT services agreement for optional enhanced technology services — antivirus, browser tools, and advanced data reporting — which raises the quarterly technology fee from $190 to $370 if elected.

Procurement, renewals, and timing

Rally's runs an approved-supplier list for fixtures, furniture, equipment, signs, and supplies; the franchisor and its affiliates are not a required source, though they can be approved suppliers, and franchisees may propose alternative brands or suppliers for approval. Franchisees may renew for either a 10-year or a 20-year successor term, giving 180 days' notice and signing a general release — a clear point for vendors to revisit the required POS stack.

How to read the Rally's FDD

The embedded PDF viewer below holds Rally's 2025 Franchise Disclosure Document in full. Talk to FranCloud for a ranked target list of franchise systems like this one.

Questions vendors ask

Rally's, answered from the filing

Item 11's Aloha POS and Xenial mandates are set at the franchisor level. Alvaro DePalleja (Chief Restaurant Officer) is the named executive over restaurant operations, alongside Chris Tebben (CEO and President).
Item 11 requires the Aloha POS system (version 19 or higher), an integrated restaurant management system owned by Xenial, Inc., and a firewall from a preferred vendor; Olo is required for franchisees who join the optional Order Ahead Program. Optional add-on IT services raise the quarterly technology fee from $190 to $370 if a franchisee elects them.
Rally's runs an approved-supplier list; the franchisor and its affiliates are not a required source but can be approved suppliers themselves. Franchisees can propose alternative brands or suppliers, submitting specifications and samples for approval.
Franchisees may renew for either a 10-year or a 20-year successor term with 180 days' notice and a signed release, which makes renewal and re-signing a natural trigger for revisiting the Aloha and Xenial stack.
The embedded PDF viewer below contains Rally's 2025 Franchise Disclosure Document. Read Item 11 for its POS mandate and Item 8 for supplier rules directly in the filing.
Source

Read the filing itself

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

254 operators run 561 mapped locations. 72 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit182
2–9 units64
10–24 units7
25+ units1

Top states by locations

GA48
NY45
MI38
CA32
FL31

Ownership

The portfolio behind Rally's

strategic_multibrand of Checkers Drive-In Restaurants.

Sibling brands

Related Quick service restaurant brands

Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.