What is the estimated total initial investment range for a Checkersrallys franchise, exclusive of real estate and related costs?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ased operations.
1. MODULAR DESIGN DRIVE-THRU RESTAURANT
| 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 | #### 2. CONVERSION RESTAURANT |
| 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 | #### 3. SITE BUILT RESTAURANT |
| 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) | $785,150- $1,112,973 | Dependent upon bank financing | As agreed | Contractors, Suppliers, Lending Institutions | |
| Restaurant Equipment & Technology | $122,976- $329,538 | As incurred | On ordering | Suppliers | |
| Soft Costs (See Note 3) | $28,500- $150,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions | |
| Signage including | $39,031- | As incurred | On ordering | Us or Other | |
| Menuboards | $97,690 | Supplier | |||
| 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 | |
| Inventory (See Note | $4,000 - | As incurred | When delivered | Suppliers | |
| 4) | $12,000 | ||||
| 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)) | $1,064,657 - $1,877,201 | # 4. ENDCAP RESTAURANT |
| 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. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the total estimated initial investment necessary to begin operation of a Checkersrallys franchise, excluding real estate and related costs, varies depending on the restaurant model. For a modular design drive-thru restaurant, the estimated initial investment ranges from $683,372 to $1,479,774. For a conversion restaurant, the estimated initial investment ranges from $123,630 to $725,538. For a site-built restaurant, the estimated initial investment ranges from $514,920 to $2,132,493.
These initial investment costs include expenses such as the initial franchise fee, which ranges from $15,000 to $30,000 depending on the restaurant model, an initial advertising deposit of $15,000, and an asset transfer fee that ranges from $0 to $10,000. Further costs include restaurant building costs, restaurant equipment and technology, soft costs, signage, inventory, and additional funds for the first three months of operation. The amounts vary based on the specific type of restaurant being established.
Prospective franchisees should note that these figures are estimates, and actual costs may vary depending on factors such as management skill, local economic conditions, and competition. The FDD indicates that these costs do not include real estate expenses, which can vary significantly based on location and market conditions. It is crucial for potential franchisees to carefully review all components of the initial investment and conduct thorough due diligence to understand the potential financial obligations involved in establishing a Checkersrallys franchise.