Highlights of Rally’s Restaurants’ Item 19 Financial Performance Representations (2011 FDD)

Rally’s Restaurants feature a limited menu of hamburgers, chicken and fish sandwiches, hotdogs, wings, fries, sundaes, and shakes.

The total investment necessary to begin operation of a Rally’s Restaurant is $453,000 to $627,200 (excluding real estate and related costs). This includes up to $40,000 that must be paid to the franchisor or an affiliate.

Statement of Average Net Sales of Rally’s Restaurants for the 53-Week Period Ending January 3, 2011

This statement of average net sales consists of the averages of the reported annual net sales of the 128 company-owned restaurants and the 169 franchisee-owned restaurants that were open during the entire 53-week period ending January 3, 2011.

The statement of average net sales excludes the results from 12 franchisee-owned restaurants and 5 company-owned restaurants that were not open during the entire 53-week reporting period ending January 3, 2011.

These financial performance representations do not reflect the cost of sales, operating expenses, and other costs or expenses that must be deducted from the gross sales figures to obtain net income or profit.

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