What is the method of payment for the Restaurant Building 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 | National Production Fund |
| Asset Transfer Fee | $0 - $10,000 | Lump Sum | At time of signing the Franchise Agreement | Us |
| Restaurant Building Costs (See Note 2) | $85,000 - $700,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| Restaurant Equipment & Technology (See Note 2) | $199,763 - $329,538 | As incurred | On ordering | Suppliers |
| Soft Costs (See Note 3) | $0 - $42,250 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions |
| 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 |
| Signage including | $9,607 - | As incurred | On ordering | Us or Other |
| Menuboards | $61,750 | Supplier | ||
| 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)) | $383,370 - $1,320,538 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the method of payment for Restaurant Building costs for a Site Built Restaurant is dependent upon bank financing. The amount ranges from $85,000 to $700,000. These payments are made to Contractors, Suppliers, and Lending Institutions and are due dependent upon bank financing.
This means a prospective Checkersrallys franchisee will likely need to secure financing to cover these building costs. The exact amount will vary depending on the specific location, construction costs, and any existing site conditions. The payments will be disbursed according to the financing agreement, directly to the contractors, suppliers, and lending institutions involved in the construction project.
It is important for potential Checkersrallys franchisees to carefully consider their financing options and to factor in potential fluctuations in construction costs when planning their initial investment. Understanding the terms of the bank financing and maintaining open communication with contractors and suppliers will be crucial for managing these expenses effectively.