Falcons Burger, an existing operator of Checkers and Rally’s restaurants, has acquired another 30 units from retiring franchisee Joe Hertzman, the company announced on Thursday.
The locations are in Indiana and Kentucky. Falcons Burger now operates 57 Checkers and Rally’s locations across several states, making it the Tampa-based burger chain’s largest franchisee. The operator is also building new units, Checkers and Rally’s said.
“Joe was one of our very first Rally’s franchisees more than 30 years ago, and we’re grateful for his dedication,” Kris McDonald, VP of development for Checkers and Rally’s, said in a statement.
Terms of the deal were not disclosed.
Retiring franchisees along with some pent-up demand for acquisitions after the pandemic has led to a surge in mergers and acquisitions among franchisees in recent months.
Demand from potential buyers such as Falcons has driven up the valuation for many concepts. Falcons Burger is owned by The Falcons Group, a multi-concept franchise company led by President Ali Chunara, CEO Shamsu Charania and Chief Administrative Officer Sundar Pillai.
The company also owns and operates Dunkin’ locations and has real estate investments. Falcons is increasing its investment in Checkers & Rally’s at a time that the company has seen stronger sales as consumers gravitated toward drive-thrus after the pandemic.
“Checkers and Rally’s has a proven and beloved concept that continues to expand and improve with an eye toward the future,” Charania said in a statement, citing the concept’s return on investment, white space to grow and technological innovation for his company’s investment in the concept.
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