For a Checkers franchise, what is the range for the estimated expenditure on Additional Funds for the first 3 months of operation?
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. |
| TOTAL ESTIMATED INITIAL INVESTMENT (exclusive of real estate and related costs (see Note 2 and 6)) | $683,372 - $1,479,774 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the estimated expenditure for additional funds during the first three months of operation ranges from $50,000 to $120,000. These additional funds are intended to cover pre-opening expenses and working capital.
The FDD specifies that pre-opening expenses are estimated to range between $10,000 and $40,000. These expenses include 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 is estimated to range between $30,000 and $60,000, covering general operating expenses like lease payments, inventory, payroll, payroll expenses, facility expenses, insurance, pest control, security, repairs and maintenance, complimentary sales, and other costs.
The FDD notes that these figures are estimates, and Checkers cannot guarantee that franchisees will not incur additional expenses. The actual cost will depend on factors such as the franchisee's management skill, experience, business acumen, local economic conditions, the local market, prevailing wage rates, competition, and sales levels during the start-up phase. These estimates do not include any debt service costs.
Prospective Checkers franchisees should carefully consider these factors and develop a detailed financial plan to ensure they have sufficient capital to cover all expenses during the initial months of operation. It is important to note that these costs can vary significantly based on location and individual circumstances.