factual

What is the range for the Initial Franchise Fee that Checkersrallys franchisees can expect to pay?

Checkersrallys Franchise · 2025 FDD

Answer 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. 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 #### 5. IN-LINE RESTAURANT IN HIGH DENSITY MARKET
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) $395,000 - $477,250 Dependent upon bank financing Dependent upon bank financing Contractors, Suppliers, Lending Institutions
Restaurant Equipment & Technology (See Note 2) $75,500 - $352,000 As incurred On ordering Suppliers
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
Soft Costs (See Note 3) 27,500 – 33,000 Dependent upon bank financing Dependent upon bank financing Contractors, Suppliers, Lending Institutions
Signage including $14,725 - As incurred On ordering Us or Other
Menuboards $17,729 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)) $601,725 – $1,066,979 ## 6. GAS/CONVENIENCE, NON-TRADITIONAL, OR WALMART RESTAURANT
Type of expenditure Amount Method of payment When Due To whom payment is to be made
Initial Franchise Fee (See Note 1) $15,000 - $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
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
Restaurant Building Costs (See Note 2) $2,630 - $149,000 Dependent upon bank financing Dependent upon bank financing Contractors, Suppliers, Lending Institutions
Restaurant Equipment & Technology (See Note 2) $25,000 - $329,538 As incurred On ordering Suppliers
Soft Costs (See Note 3) $8,000 - $30,000 Dependent upon bank financing Dependent upon bank financing Contractors, Suppliers, Lending Institutions
Signage including $4,000 - As incurred On ordering Us or Other
Menuboards $30,000 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)) $123,630 - $725,538 NOTE 1 See description of the initial franchise fee in Item 5 of this franchise disclosure document.

NOTE 2 Chart 1: Modular Design Drive-Thru Restaurant. The "Restaurant Building" line item reflects our estimate of the cost of constructing a modular drive-thru restaurant which is manufactured and shipped to the Premises, with an estimated size of approximately 1,008 square feet for the building on a site of approximately 19,080 to 30,000 square feet. The "Restaurant Building" estimate includes the cost of the building, building shipping and building assembly.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)

What This Means (2025 FDD)

According to Checkersrallys's 2025 Franchise Disclosure Document, the initial franchise fee ranges from $15,000 to $30,000 depending on the type of restaurant purchased. This fee is paid in a lump sum at the time of signing the Franchise Agreement and is paid to Checkersrallys. Note 1 of Item 7 states that further description of the initial franchise fee can be found in Item 5 of the FDD.

It is typical in the franchise industry for the initial franchise fee to cover the franchisor's initial costs of setting up a new franchisee. These costs include things like training, site selection assistance, and providing the franchisee with the operations manual and other materials. The initial franchise fee is typically non-refundable, so it is important for prospective franchisees to do their research and make sure that Checkersrallys is the right fit for them before signing the Franchise Agreement.

In addition to the initial franchise fee, Checkersrallys franchisees will also be responsible for other initial investment costs, such as restaurant building costs, restaurant equipment and technology, soft costs, signage, inventory, and additional funds for the first 3 months of operation. These costs can vary depending on the location and size of the restaurant, as well as the franchisee's individual circumstances. The total estimated initial investment for a Checkersrallys franchise ranges from $123,630 to $2,132,493, exclusive of real estate and related costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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