What soft costs are included in the estimated initial investment for a Checkersrallys restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
drive thru timers (if applicable), and associated hardware.
- NOTE 3 This estimate includes soft costs such as due diligence, surveys, fees for architects and engineers, permit, and impact fees, which vary by your region and specific location. If you construct an endcap restaurant in a strip-center, retail gas station or convenience store with a single drive-thru, we do not anticipate that you will incur many of these costs as the Premises of the restaurant will already be established.
- NOTE 4 This estimate is net of supplier discounts of approximately $4,000 on the initial order of food products and supplies.
- NOTE 5 This is an estimate, based on our experience of opening and operating Restaurants (including actual restaurant openings during the last 3 years), of your pre-opening expenses and working capital requirements for the first 3 months of operations. Pre-opening expenses are estimated to range between $10,000 and $40,000 and include such items as 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 for the first 3 months are estimated to range between $30,000 and $60,000 and include 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 figures are estimates and we cannot assure you that you will not have additional expenses in starting the Franchised Restaurant. Your actual cost will depend on factors such as your management skill, experience and business acumen; local economic conditions; the local market for the Franchised Restaurant; the prevailing wage rate; competition in the market place; and the sales level reached during the start-up phase. These amounts do not include any estimates for any debt service.
- NOTE 6 The chart provides an estimate of your initial investment for a Checkers Restaurant or Rally's Restaurant on a leased site. The total estimated initial investment does not include real estate and related costs.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the soft costs included in the estimated initial investment cover a range of pre-opening expenses. These soft costs, as detailed in Note 3, encompass expenses like due diligence, surveys, fees for architects and engineers, permits, and impact fees. The actual amount can vary significantly depending on the region and the specific location of the Checkersrallys restaurant. The soft costs are paid to contractors, suppliers, and lending institutions and are due dependent upon bank financing.
For a prospective Checkersrallys franchisee, understanding these soft costs is crucial for accurate budgeting. The FDD indicates that these costs are dependent upon bank financing. The amount of soft costs varies depending on the type of restaurant. For example, the soft costs for a modular design drive-thru restaurant range from $28,500 to $150,000. For a conversion restaurant, the soft costs range from $17,200 - $225,625. For a site built restaurant, the soft costs range from $50,000-$89,710. For a Checkers or Rally's restaurant, the soft costs range from $27,500 – 33,000. For a Checkers or Rally's restaurant on a leased site, the soft costs range from $8,000 - $30,000. For a Checkers restaurant, the soft costs range from $0 - $42,250.
However, the FDD also notes that if a franchisee constructs an endcap restaurant in a strip-center, retail gas station, or convenience store with a single drive-thru, they might not incur many of these soft costs. This is because the premises of the restaurant will already be established, potentially reducing the need for extensive due diligence, surveys, and certain permit fees. Franchisees should carefully evaluate their chosen location and its existing infrastructure to estimate their potential soft costs accurately.
Prospective franchisees should discuss these soft costs in detail with Checkersrallys to gain a clearer understanding of the potential expenses associated with their specific location and restaurant type. Understanding these costs is essential for managing the overall initial investment and ensuring the financial viability of the franchise.