For a Checkers conversion restaurant, what is the range for the estimated total initial investment, excluding real estate and related costs?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Restaurant Building Costs (See Note 2) | $2,630 - $149,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Restaurant Equipment & Technology (See Note 2) | $25,000 - $329,538 | As incurred | On ordering | Suppliers |
| Soft Costs (See Note 3) | $8,000 - $30,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Signage including | $4,000 - | As incurred | On ordering | Us or Other |
| Menuboards | $30,000 | Supplier | ||
| Inventory (See Note | $4,000 - | As incurred | When delivered | Suppliers |
| 4) | $12,000 | |||
| Additional Funds - 3 Months (See Note 5) | $50,000 - $120,000 | As incurred | As incurred | Employees, suppliers, utilities, etc. |
| TOTAL ESTIMATED INITIAL INVESTMENT (exclusive of real estate and related costs (see Note 2 and 6)) | $123,630 - $725,538 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the estimated total initial investment for a conversion restaurant, excluding real estate and related costs, ranges from $123,630 to $725,538. This investment covers various expenditures, including restaurant building costs, restaurant equipment and technology, soft costs, signage (including menuboards), inventory, and additional funds for the first three months of operation. These figures exclude real estate expenses.
The 'Restaurant Building Costs' for a conversion restaurant are estimated to be between $2,630 and $149,000, while 'Restaurant Equipment & Technology' costs range from $25,000 to $329,538. 'Soft Costs' such as due diligence, surveys, and permits are estimated at $8,000 to $30,000. Signage and menuboards can cost between $4,000 and $30,000. Inventory is estimated to cost between $4,000 and $12,000. Additionally, Checkers estimates that franchisees will need $50,000 to $120,000 for additional funds to cover the first three months of operation.
It is important to note that these are estimates, and the actual initial investment may vary depending on factors such as management skill, local economic conditions, and the specific location. The FDD advises that these costs do not include any debt service. Prospective franchisees should carefully review these estimates and consider their own circumstances when evaluating the financial requirements for opening a Checkers conversion restaurant.