What is the range for the 'Soft Costs' expenditure for a Checkers restaurant, and upon what is the payment dependent?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Soft Costs (See Note 3) | $8,000 - $30,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Soft Costs (See Note 3) | $0 - $42,250 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Soft Costs (see Note 3) | $17,200 - $225,625 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Soft Costs (See Note 3) | $50,000- $89,710 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Soft Costs (See Note 3) | $28,500- $150,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Soft Costs (See Note 3) | 27,500 – 33,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
- NOTE 3 This estimate includes soft costs such as due diligence, surveys, fees for architects and engineers, permit, and impact fees, which vary by your region and specific location. If you construct an endcap restaurant in a strip-center, retail gas station or convenience store with a single drive-thru, we do not anticipate that you will incur many of these costs as the Premises of the restaurant will already be established.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the estimated range for 'Soft Costs' can vary significantly based on the restaurant type. For a modular design drive-thru restaurant, the soft costs range from $8,000 to $30,000. For a conversion restaurant, these costs can range from $0 to $42,250. For a site-built restaurant, the soft costs are estimated to be between $17,200 and $225,625. For an endcap restaurant, the soft costs are estimated to be between $50,000 and $89,710. For a Checkers restaurant, the soft costs are estimated to be between $28,500 and $150,000. For a gas/convenience, non-traditional, or Walmart restaurant, the soft costs are estimated to be between $27,500 and $33,000.
These 'Soft Costs' encompass expenses like due diligence, surveys, fees for architects and engineers, permits, and impact fees. The specific amount depends heavily on the region and location of the Checkers restaurant. The FDD notes that if a franchisee constructs an endcap restaurant in a strip-center, retail gas station, or convenience store with a single drive-thru, they might not incur many of these costs because the premises will already be established.
The method of payment for these soft costs is 'Dependent upon bank financing,' and the payments are due 'Dependent upon bank financing.' The payments are made to 'Contractors, Suppliers, Lending Institutions.' This indicates that franchisees will likely need to secure financing to cover these costs, and the timing of payments will align with the financing terms and the schedules of the contractors and suppliers involved in the project. This also means that the franchisee's ability to obtain financing will directly impact their ability to proceed with the project.
Prospective Checkers franchisees should carefully consider the potential variability in soft costs and discuss these estimates in detail with Checkers. Understanding the specific requirements and potential costs associated with their chosen location and restaurant type is crucial for accurate financial planning. Franchisees should also confirm with Checkers which restaurant type is most appropriate for their location.