For a Checkersrallys franchise, what is the estimated range for 'Additional Funds - 3 Months' and to whom are these payments made?
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. |
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' is $50,000 to $120,000. These funds are intended to cover expenses incurred during the initial three months of operation.
The payments for these additional funds are made to various entities including employees, suppliers, and utility companies. These funds are disbursed as incurred, meaning the franchisee will need to have the capital available to cover these ongoing costs as they arise during the startup phase.
Note 5 further clarifies that these additional funds cover both pre-opening expenses (estimated between $10,000 and $40,000) and working capital for the first 3 months (estimated between $30,000 and $60,000). Pre-opening expenses include professional fees, organizational expenses, salaries during training, travel, living and miscellaneous expenses while attending training, utility deposits and salaries for a manager and some crew members during the 30-day period before opening. Working capital includes general operating expenses, such as lease payments, inventory, payroll, payroll expenses, facility expenses, insurance, pest control, security, repairs and maintenance and complimentary sales and other costs. These are estimates, and Checkersrallys cannot guarantee that franchisees will not incur additional expenses. The actual cost will depend on factors such as the franchisee's management skill, experience and business acumen; local economic conditions; the local market; the prevailing wage rate; competition; and the sales level reached during the start-up phase. These amounts do not include any estimates for any debt service. Prospective franchisees should carefully consider these factors and plan accordingly to ensure they have sufficient capital to sustain the business during its initial months.