What are the implications of Checkers not offering financing (Item 10) on a franchisee's ability to meet the estimated initial investment (Item 7)?

According to Checkers' 2025 Franchise Disclosure Document, Checkers does not offer any financing for the initial investment required to open a franchise. This means that prospective franchisees must secure funding through their own means, such as personal savings, loans from banks or other lending institutions, or private investors. This lack of direct financing from Checkers places the onus on the franchisee to manage the financial burden of starting the business.

The estimated initial investment for a Checkers restaurant varies significantly depending on factors such as the restaurant building type. For a modular design drive-thru restaurant, the "Restaurant Building" costs range from $85,000 to $700,000, while other restaurant building costs can range from $322,062 to $1,112,973. Additional costs include the initial franchise fee ($20,000 - $30,000), initial advertising deposit ($15,000), asset transfer fee ($0 - $10,000), restaurant equipment & technology ($75,500 - $352,000), and soft costs ($0 - $150,000). Given these substantial figures, the franchisee's ability to independently secure financing is critical.

Since franchisees must seek external financing, they should be prepared to present a comprehensive business plan to potential lenders. This plan should include detailed financial projections, market analysis, and management experience. Furthermore, franchisees should factor in potential interest rates and repayment terms, which will impact their ongoing operational costs. The FDD notes that costs such as Restaurant Building and Soft Costs are dependent upon bank financing, further emphasizing the franchisee's need to secure these funds independently. The absence of direct financing from Checkers underscores the importance of thorough financial planning and preparation for prospective franchisees.