What is the estimated range for Soft Costs for a Checkersrallys Site Built 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 soft costs for a Site Built Restaurant ranges from $17,200 to $225,625. These soft costs, as detailed in Note 3, encompass expenses such as due diligence, surveys, fees for architects and engineers, and permit and impact fees. These costs can fluctuate based on the restaurant's region and specific location.
Prospective Checkersrallys franchisees should be aware that soft costs are a significant component of the overall initial investment. The wide range suggests that these costs are highly variable and can be influenced by factors that are difficult to predict with certainty. Franchisees should conduct thorough due diligence to understand the specific requirements and costs associated with their chosen location.
It is also important to note that these soft costs are dependent upon bank financing and are paid to contractors, suppliers, and lending institutions. Understanding the factors that drive these costs and obtaining detailed quotes from multiple vendors can help franchisees manage their initial investment effectively. Franchisees should also consult with experienced professionals, such as real estate consultants and contractors, to assess potential soft costs accurately.