Rally's franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.31 ↗

Franchise fees and ongoing costs

Franchise fee

$15,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

4% · 4% of Net Sales (2% if operating from a Non-Traditional Site), paid semi-monthly on the 5th and 20th of each month

Marketing contribution

4.5% (basis not captured; see original filing)

Technology fee

$190-$370 per quarter (Aloha POS Command and Configuration Center/Menu Management; enhanced tier is $370/quarter)

Other fees

Not captured

Working capital (FDD Item 7)

$50,000-$120,000 for the first 3 months of operation (pre-opening expenses estimated at $10,000-$40,000 plus working capital of $30,000-$60,000), covering employees, suppliers, utilities, etc.

Fees sourceFDD p.21 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.31 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median Net Sales, % of restaurants attaining/exceeding the average, and low/high Net Sales range, for Rally's Restaurants, broken out by company-owned vs. franchised and by restaurant format

Reporting period

2025 Fiscal Year (52-week period ended December 29, 2025)

Sample

164 franchised and 99 company-owned Rally's Restaurants open and operating at least 350 days during the 2025 Fiscal Year (Table A, All Restaurants); a separate Table B covers 10 franchised Rally's Restaurants in their first year of operation (opened January 2023-December 2025)

Reported average

$1,134,958

Reported median

$1,064,667

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.74 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

166

Year-end outlets

167

Net change

+1

Derivation

ending minus starting outlets

Openings

12

Terminations

0

Non-renewals

0

Other closures

11

Reacquisitions

0

Transfers

12

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.83 ↗

SBA loan history

Loan activity

8 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$3,280,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

1 loans

Historical charge-off share

0.00%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 10

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Rally's franchise cost?

Modular design drive-thru restaurant: $449,000 to $1,915,000; Conversion restaurant: $619,000 to $1,492,000; Site built restaurant: $767,500 to $1,705,000; Gas/convenience and endcap strip-center restaurant: $309,000 to $1,134,250; In-line restaurant in high density market: $651,500 to $1,055,250; Non-traditional, Walmart, or sports arena restaurant: $214,000 to $736,000 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $15,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.31 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Rally's owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median Net Sales, % of restaurants attaining/exceeding the average, and low/high Net Sales range, for Rally's Restaurants, broken out by company-owned vs. franchised and by restaurant format. Sample: 164 franchised and 99 company-owned Rally's Restaurants open and operating at least 350 days during the 2025 Fiscal Year (Table A, All Restaurants); a separate Table B covers 10 franchised Rally's Restaurants in their first year of operation (opened January 2023-December 2025). Period: 2025 Fiscal Year (52-week period ended December 29, 2025).

Item 19 performance sourceFDD p.74 ↗

What's the SBA charge-off rate for Rally's?

0.00%; numerator / denominator: 0 / 10. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $3,280,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 1 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗