What is the estimated range for the 'Additional Funds - 3 Months' expenditure for a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Additional Funds - 3 Months (See Note 5) | $50,000 - $120,000 | As incurred | As incurred | Employees, suppliers, utilities, etc. |
- NOTE 5 This is an estimate, based on our experience of opening and operating Restaurants (including actual restaurant openings during the last 3 years), of your pre-opening expenses and working capital requirements for the first 3 months of operations. Pre-opening expenses are estimated to range between $10,000 and $40,000 and include such items as professional fees, organizational expenses, salaries during training, travel, living and miscellaneous expenses while attending training, utility deposits and salaries for a manager and some crew members during the 30-day period before opening. Working capital for the first 3 months are estimated to range between $30,000 and $60,000 and include general operating expenses, such as lease payments, inventory, payroll, payroll expenses, facility expenses, insurance, pest control, security, repairs and maintenance and complimentary sales and other costs. These figures are estimates and we cannot assure you that you will not have additional expenses in starting the Franchised Restaurant. Your actual cost will depend on factors such as your management skill, experience and business acumen; local economic conditions; the local market for the Franchised Restaurant; the prevailing wage rate; competition in the market place; and the sales level reached during the start-up phase. These amounts do not include any estimates for any debt service.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the estimated range for 'Additional Funds - 3 Months' is between $50,000 and $120,000. These funds are intended to cover the franchisee's pre-opening expenses and working capital for the first three months of operation.
The FDD specifies that pre-opening expenses are estimated to range from $10,000 to $40,000. These expenses include professional and organizational fees, salaries during training, travel, living and miscellaneous expenses while attending training, utility deposits, and salaries for a manager and some crew members during the 30-day period before opening. The working capital for the first 3 months is estimated to range between $30,000 and $60,000, covering general operating expenses like lease payments, inventory, payroll, facility expenses, insurance, pest control, security, repairs and maintenance, and complimentary sales.
Checkers clarifies that these figures are estimates, and actual costs may vary based on factors such as the franchisee's management skills, local economic conditions, market conditions, prevailing wage rates, competition, and sales levels during the start-up phase. The estimate does not include any debt service.
Prospective franchisees should carefully consider these factors and create a detailed financial projection to determine their specific needs for additional funds during the initial months of operation. It is important to note that Checkers does not offer financing for the initial investment, so franchisees must secure funding through other sources.