When is the Inventory payment due for a Checkersrallys Conversion Restaurant?
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 | Lu |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the inventory payment for a Conversion Restaurant, ranging from $4,000 to $12,000, is due when the inventory is delivered. The method of payment is "as incurred," meaning the franchisee will pay for the inventory as they receive it. The payment is made to the suppliers of the inventory.
This means that a Checkersrallys franchisee converting an existing restaurant can expect to pay for their initial inventory upon delivery, rather than upfront. This could help with cash flow during the initial setup phase. The cost of inventory is an important part of the initial investment, and understanding when payment is due helps in financial planning.
It's important to note that this cost is net of supplier discounts of approximately $4,000 on the initial order of food products and supplies. Prospective franchisees should confirm the exact amount and timing of inventory deliveries with their suppliers to align with the restaurant's opening date and projected sales volume. This will help ensure they have adequate stock without overspending or running out of essential items.