For an Endcap Restaurant, what is the range for the total estimated initial investment for a Checkers franchise, excluding real estate and related costs?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ased operations.
1. MODULAR DESIGN DRIVE-THRU RESTAURANT
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $20,000 - $30,000 | Lump sum | At time of signing the Franchise Agreement. | Us |
| Initial Advertising Deposit | $15,000 | Lump sum | When you begin construction at the Premises | NPF Inc. |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
| Restaurant Building Costs (See Note 2) | $354,653- $1,292,640 | Dependent upon bank financing | As agreed | Suppliers, Lending Institutions |
| Restaurant Equipment & Technology (See Note 2) | $42,153 - $329,538 | As incurred | On ordering | Suppliers |
| Soft Costs (see Note 3) | $17,200 - $225,625 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Signage including | $11,914 - | As | On ordering | Suppliers |
| Menuboards | $97,690 | incurred | ||
| Inventory (See Note | $4,000 - $12,000 | As | When delivered | Suppliers |
| 4) | incurred | |||
| Additional Funds - 3 Months (See Note 5) | $50,000 - $120,000 | As incurred | As incurred | Employees, suppliers, utilities, etc. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the total estimated initial investment for an Endcap Restaurant, excluding real estate and related costs, ranges from $383,370 to $1,320,538. This investment covers various expenditures, including the initial franchise fee, advertising deposit, potential asset transfer fee, restaurant building costs, equipment and technology, soft costs, signage, inventory, and additional funds for the first three months of operation. These figures exclude real estate expenses.
The initial franchise fee ranges from $20,000 to $30,000, while the initial advertising deposit is a fixed $15,000. An asset transfer fee, applicable when purchasing an existing restaurant, can range from $0 to $10,000. Restaurant building costs are estimated between $85,000 and $700,000, and restaurant equipment and technology costs range from $199,763 to $329,538. Soft costs, such as due diligence and permits, can vary from $0 to $42,250.
Further, signage and menu boards range from $9,607 to $61,750, and initial inventory costs between $4,000 and $12,000. Checkers estimates that franchisees will need between $50,000 and $120,000 for additional funds to cover the first three months of operation. These additional funds are allocated for expenses such as employee wages, supplier payments, and utility costs.
Prospective Checkers franchisees should carefully review each component of the initial investment and consider their specific circumstances, as actual costs may vary. It is important to note that these estimates do not include real estate costs, which can significantly impact the total investment. Franchisees should also inquire about potential financing options to help manage these initial costs.