What is the estimated range for Soft 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 range for soft costs for a modular design drive-thru restaurant is $17,200 to $225,625. These soft costs, as detailed in Note 3, encompass expenses like due diligence, surveys, fees for architects and engineers, permits, and impact fees. These costs can vary significantly depending on the franchisee's region and specific location.
For a prospective Checkersrallys franchisee, understanding these soft costs is crucial for budgeting and financial planning. The wide range suggests that location and local regulations play a significant role in determining these expenses. Franchisees should conduct thorough due diligence to assess the specific soft costs applicable to their chosen site.
It's important to note that if a franchisee constructs an endcap restaurant in a strip-center, retail gas station, or convenience store with a single drive-thru, Checkersrallys does not anticipate that they will incur many of these soft costs, as the premises will already be established. This could represent a significant cost saving for franchisees who opt for such locations. Therefore, when evaluating potential sites, franchisees should consider the potential impact on soft costs and factor this into their decision-making process.