It’s no secret that many fast food and fast casual restaurant chains have been having a rough several years.
Since the pandemic, restaurants of all stripes have faced a lot of the same issues: lower foot traffic, higher costs, and customers who are increasingly choosy about where they spend their discretionary dollars as inflationary pressures continue to bite.
These factors are often key drivers of store closures. Over the past month alone, major chains including Wendy’s, Burger King, and TGI Fridays have seen locations shut.
Of course, those aren’t the only chains closing stores. And now, thanks to a newly amended franchise disclosure document (FDD) from Checkers Drive-In Restaurants, Inc., the privately held company that owns the Checkers drive-thru chain and Rally’s fast food chain, we know how many stores have closed recently for two well-known burger brands.
Checkers restaurant closures
Last week, Checkers Drive-In Restaurants issued an amended franchise disclosure document (FDD). The document is a legal requirement in the United States that any company selling franchises must provide to its current and prospective franchisees.
While the document goes into great detail on a number of financial issues related to Checkers and Rally’s operations, it also reveals just how many locations Checkers Drive-In Restaurants has closed over the past three financial years, running from 2023 through 2025.
When it comes to Checkers store closures, the FDD reveals a total of 516 outlets at the beginning of 2023. That includes both company- and franchisee-owned stores. By the end of fiscal 2025, that number had dropped to 453.
That’s a net loss of 63 locations over the three-year period.
The biggest net decline in Checkers locations during that period came from the loss of franchisee-owned locations. During the three-year period, there was a net loss of 52 franchised stores. That compares to a net loss of only 11 company-owned stores during the period.
When it comes to net losses by state for all Checkers stores from 2023-2025, Florida and Georgia have lost the most. The numbers break down as follows:
- Alabama: -6
- Florida: -10
- Georgia: -13
- Illinois: -9
- Michigan: -4
- Mississippi: -4
- New York: -8
- North Carolina: -2
- Tennessee: -9
- Texas: -12
- Virginia: -1
Rally’s restaurant closures
As for Rally’s locations, the FDD reveals that at the start of 2023, there were a total of 294 company-owned and franchisee locations. At the end of 2025, there were a total of 266.
That’s a net loss of 28 locations.
During that period, there was a net loss of 4 franchised Rally’s stores and a net loss of 24 company-owned stores.
When it comes to net losses by state for all Rally’s stores from 2023-2025, California appears to have lost the most. The numbers break down as follows:
- Alabama: -1
- California: -11
- Indiana: -8
- Kentucky: -3
- Louisiana: -3
- Mississippi: -1
- Missouri: -3
- Ohio: -4
Why have Checkers and Rally’s footprints shrunk over the past three years?
Despite the two chains’ shrinking footprint over their parent company’s most recent three full fiscal years, the brands also added some locations, which helped improve net loss numbers.
The document also shows that, as of the end of last year, Checkers expected to open 12 more locations in 2026. Rally’s, meanwhile, expected to open an additional 4 restaurants.
As for why the locations that closed did so, the document lists the reason as “Ceased Operations – Other Reasons” for the majority of the store closures.
“Other reasons” can likely include everything from voluntary closures to liquidity issues.
Fast Company has reached out to Checkers Drive-In Restaurants for comment.
This story is developing…