What is the estimated range for Inventory costs 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 | NPF Inc. |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
| Restaurant Building Costs (See Note 2) | $354,653- $1,292,640 | Dependent upon bank financing | As agreed | Suppliers, Lending Institutions |
| Restaurant Equipment & Technology (See Note 2) | $42,153 - $329,538 | As incurred | On ordering | Suppliers |
| Soft Costs (see Note 3) | $17,200 - $225,625 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Signage including | $11,914 - | As | On ordering | Suppliers |
| Menuboards | $97,690 | incurred | ||
| Inventory (See Note | $4,000 - $12,000 | As | When delivered | Suppliers |
| 4) | incurred | |||
| Additional Funds - 3 Months (See Note 5) | $50,000 - $120,000 | As incurred | As incurred | Employees, suppliers, utilities, etc. |
| 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 |
| TOTAL ESTIMATED INITIAL INVESTMENT (exclusive of real estate and related costs (see Note 2 and 6)) | $514,920 - $2,132,493 |
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 initial investment for inventory for a Modular Design Drive-Thru Restaurant ranges from $4,000 to $12,000. This investment is paid as incurred, and payments are made to suppliers when the inventory is delivered. Inventory costs are part of the broader expenses associated with opening a Checkersrallys franchise.
This range provides a prospective Checkersrallys franchisee with an idea of the capital required to stock the restaurant with the necessary food and supplies to begin operations. However, Note 4 indicates that this estimate is net of supplier discounts of approximately $4,000 on the initial order of food products and supplies. This means the initial order value could be higher, but the franchisee benefits from these discounts.
It's important to note that these figures are estimates, and the actual inventory costs may vary. Factors influencing these costs include the franchisee's management skills, local economic conditions, and the restaurant's sales level during the start-up phase. The FDD advises that franchisees may incur additional expenses beyond these estimates, and these amounts do not include any estimates for debt service.
Prospective franchisees should carefully consider these estimates and conduct their own research to determine the potential inventory costs for their specific location and circumstances. Speaking with existing Checkersrallys franchisees can provide valuable insights into real-world experiences and help refine these estimates.