Industry News | October 5, 2000

Checkers Announces Sale of 28 Restaurants

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Checkers Drive-In Restaurants, Inc. (Nasdaq: CHKR) announced today that it has sold 28 Rally's restaurants in Louisville and Lexington, Kentucky to BVI Double Drive-Thru, Inc. of Louisville, Kentucky for $8.0 million. BVI Double Drive-Thru, Inc., which is owned by David Miller who was an 11 year employee of Checkers, will operate the newly acquired Rally's restaurants as a franchisee and will pay ongoing royalties based on sales at the restaurants. Michelle Crawford, the regional vice president in charge of these markets will also be joining Miller as an operating partner in BVI Double Drive-Thru, Inc. Checkers Drive-In Restaurants will use the net proceeds from this transaction to further reduce existing debt.

BVI Double Drive-thru has entered into a development agreement in conjunction with their purchase where they have committed to adding 14 new Rally's locations over the next 5 years.

"I am very excited to have Dave and Michelle become franchisees," said Daniel Dorsch, president and chief executive officer of Checkers."I am confident they will do well and the franchise system will benefit from their experience.'' Dorsch continued, "We have now sold a total of 241 restaurants to franchisees and entered into new development agreements for 123 additional stores over the next five years.''

Checkers Drive-In Restaurants has nearly completed its transition from a 50 percent corporate/50 percent franchise store mix to a 25 percent corporate and 75 percent franchise store mix. The Company intends to sell approximately 40 additional restaurants to franchisees over the next six months. Checkers Drive-In Restaurants merged with Rally's Hamburgers in 1999 to create the largest double drive-thru system in the United States.

Checkers Drive-In Restaurants, Inc. and its franchisees own approximately 434 Checkers operating primarily in the Southeastern United States and approximately 446 Rally's operating primarily in the Midwestern United States.