Checkers Tenant Overview


  • NNN leases
  • Long-term tenant
  • Well-known chain


  • Smaller footprint than QSR competition
  • Competitive sector
  • Privately held

Tenant Description

Checkers is a drive-in chain dedicated to serving American classics for competitive prices.

Originally different companies, Checkers was founded in 1986 in Mobile, Alabama, while Rally’s was founded in 1985 in Louisville, Kentucky. In 1999, CKE Restaurants decided to sell the Rally’s brand to Checkers which merged the two drive-through chains into one single entity. Most recently, Checkers was sold to Oak Hill Capital Partners in March of 2017, where it is currently still under private ownership.

The names used are currently being split by regions, with Checkers being used mainly in the Southeast along with the Northeast, while the Rally’s brand is used in the Midwest and California. Currently headquartered in Tampa, FL, Checkers currently has about 900 locations.

Checkers locations are ideal for someone looking to invest in the net lease market as they are NNN leases, alleviating the ownership of maintaining the structure and lot, and will have a longer-term length on their lease, usually 20 years. These leases will also feature built-in escalations to help protect against inflation. Properties are positioned with maximum exposure to through traffic along with ease of access. Buildings do follow a unique layout as well, usually under 1,000 SF, which does limit the ability to find a replacement tenant should Checkers vacate the building upon lease expiration.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $1,559,271
NOI $82,016
$/Square Foot $1,641 - $1949
Building SF 800 - 950
Lot Size .5 - .75 Acres
Lease Term 20 Years
Escalations Varies
Stock Symbol N/A
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Lakeland, FL 4.39%
Miami, FL 4.61%
Augusta, GA 5.00%
Lagrange. GA 6.25%