What is the estimated range for Additional Funds (3 Months) for a Checkersrallys Modular Design Drive-Thru Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $20,000 - $30,000 | Lump sum | At time of signing the Franchise Agreement | Us |
| Initial Advertising Deposit | $15,000 | Lump sum | When you begin construction at the Premises | National Production Fund |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
| Restaurant Building (See Note 2) | $322,062- $739,445 | Dependent upon bank financing | As agreed | Contractors, Suppliers, Lending Institutions |
| Restaurant Equipment & Technology | $193,260- $329,538 | As incurred | On ordering | Suppliers |
| Soft Costs (See Note 3) | $50,000- $89,710 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Signage including | $29,050- | As incurred | On ordering | Us or Other |
| Menuboards | $134,081 | Supplier | ||
| Inventory (See Note | $4,000 - | As incurred | When delivered | Suppliers |
| 4) | $12,000 | |||
| Column 1 Type of expenditure | Column 2 Amount | Column 3 Method of payment | Column 4 When Due | Column 5 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 Checkersrallys's 2025 Franchise Disclosure Document, the estimated range for Additional Funds (3 Months) for a Modular Design Drive-Thru Restaurant is $50,000 to $120,000. These funds are intended to cover expenses incurred during the first three months of operation. These expenses are paid to employees, suppliers, and utilities, among others.
These additional funds are crucial for covering the initial operating costs while the business gains traction. It's important to note that this is just an estimate, and the actual amount needed may vary based on factors such as management skills, local economic conditions, and competition.
Prospective franchisees should carefully consider these figures and create a detailed financial plan to ensure they have sufficient capital to sustain the business during its early months. It would be prudent to discuss with Checkersrallys existing franchisees to understand their experiences with initial costs and ongoing expenses.