Beloved fast-food burger franchise files for bankruptcy amid plummeting revenue
Burger bust.A franchisee of a 40-year-old burger chain has declared bankruptcy amid sinking sales.
Checkers and Rally’s franchisee Global Midsouth Holding Corp.filed for Chapter 11 bankruptcy after receiving a foreclosure notice on its Jackson, Tennessee, restaurant.The Memphis-based debtor filed for bankruptcy protection on Oct.
28, 2026, in the U.S.Bankruptcy Court for the Western District of Tennessee.The filing imposed an automatic stay on all legal actions against the debtor while the case progresses.
Founded in 1986, Checkers Drive-In Restaurants now operates more than 700 locations across the Eastern, Midwestern, Southeastern, and Western United States.Rally’s, once a competitor of Checkers, was acquired by and merged with the brand in 1999.Under its franchise model, Checkers and Rally’s allows operators to build on parcels smaller than half an acre, roughly half the footprint required by rival drive-thru chains.In its petition, Global Midsouth listed $1.9 million in assets and $1.3 million in liabilities.
The petition listed two unsecured creditors: $3,400 owed to the State of Tennessee Department of Revenue and $2,500 owed to Madison County Waste Disposal.Revenues have declined over the last two years, from $860,000 in total revenue in 2024 to $800,000 in revenue in 2025.The company reported only $582,000 in revenue in 2026 through the filing date.
Sedrick Turner, the owner of Global Midsouth, has been a Checkers and Rally’s franchisee for nearly thirty years.In that time, he expanded his restaurant portfolio to 16 locations in Alabama, Missouri, Mississippi, and Tennessee.“With every restaurant we operate, we aim to elevate the guest experience, strengthen our team, and serve the surrounding community,” Turner said in a statement.
“I’ve spent over three decades building and leading franchise operations, and I believe success comes from staying hands-on, empowering your people, and delivering consistent quality.”Robert Bhagwandat, Ch...