Sentinel Capital Partners acquires Checkers and Rally's

Experienced Restaurant and Franchising Investor Adds National Franchisor to Portfolio

NEW YORK, March 10, 2014 – Sentinel Capital Partners, a private equity firm that invests in promising, lower middle market companies, today announced the closing of its acquisition of Checkers Drive-In Restaurants, Inc., the franchisor and operator of 782 Checkers® and Rally’s® restaurants. Terms of the purchase agreement were not disclosed.

The Checkers system consists of 450 franchised and 332 company-owned locations with established strongholds in the Southeast, Mid-Atlantic, and Midwest. Checkers is the largest quick service restaurant (“QSR") operator of dual drive-through restaurants and differentiates itself through its craveable food and exceptional value. Checkers/Rally’s operates within the $65 billion hamburger QSR market and has achieved steady growth since 2001.

"We are very excited to partner with Checkers’ exceptional and operation-focused management team," said James Coady, a Sentinel partner. “Checkers and Rally’s are well established brands with a long history of solid performance and a significant opportunity for future growth."

Checkers/Rally’s CEO, Rick Silva, a 20-year QSR industry veteran with seven years at Checkers/Rally’s, commented, "Sentinel is an ideal partner for us as we grow our brands. Sentinel has almost 20 years of experience and success in restaurant and franchising investments, and they share our passion and commitment to growing the Checkers and Rally’s brands."

Since its inception, Sentinel has made seven other franchise investments besides Checkers/Rally’s, including Border Foods, a leading QSR franchisee in the Taco Bell system; Cottman Transmission Systems, the nation’s second-largest franchisor of transmission repair centers; Falcon Holdings, the largest QSR franchisee of Church's Chicken restaurants; Huddle House, a leading franchisor of family dining restaurants; Interim Healthcare, the nation's largest provider and franchisor of home-based healthcare services; Massage Envy, the nation’s largest provider and franchisor of therapeutic massage and spa services; and Southern California Pizza Company, a 223-unit Pizza Hut QSR franchisee operating in the greater Los Angeles market.