What is the average amount spent on royalties, occupancy, and operating costs for a new Checkersrallys restaurant, according to the financial performance representation?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Average New Restaurant | % of Net Sales | Median New Restaurant | # and % Attaining or Exceeding Average | High / Low | |
|---|---|---|---|---|---|
| ROYALTIES, OCCUPANCY AND OPERATING COSTS | $325,738 | 27% | $325,738 | 1 or 50% | $307,678 - $343,799 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 71–77)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the average expenditure on royalties, occupancy, and operating costs for a new restaurant is $325,738, which represents 27% of net sales. The median expenditure for these costs is also $325,738.
This figure includes various expenses such as rent, property taxes, marketing expenditures (including contributions to the National Production Fund and regional cooperatives, as well as restaurant-specific promotions), utility costs (electricity, gas, water, and sewer), a presumed royalty of 4% of net sales, and other routine expenses like maintenance, repairs, supplies, bank charges, and uniforms.
It's important to note that this data is based on a limited sample size, as indicated by the fact that only one restaurant, or 50% of those considered, attained or exceeded the average. The range for these costs varied from $307,678 to $343,799. Prospective franchisees should be aware that these costs can significantly impact their profitability and should conduct thorough due diligence to understand local market conditions and potential expenses.