What is the total estimated initial investment range for a Checkersrallys Conversion Restaurant, excluding real estate?
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) | $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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the total estimated initial investment for a Conversion Restaurant, excluding real estate costs, ranges from $123,630 to $725,538. This investment covers various expenses, with the amounts payable to different entities such as Checkersrallys, contractors, suppliers, lending institutions, employees, and utility companies.
The initial investment includes several key components. The initial franchise fee ranges from $15,000 to $30,000, payable to Checkersrallys upon signing the Franchise Agreement. An initial advertising deposit of $15,000 is due when construction begins. Restaurant building costs range from $2,630 to $149,000, while restaurant equipment and technology costs range from $25,000 to $329,538. Soft costs are estimated between $8,000 and $30,000. Signage and menu boards range from $4,000 to $30,000, and initial inventory costs between $4,000 and $12,000.
Additionally, the initial investment includes an asset transfer fee ranging from $0 to $10,000, payable to Checkersrallys at the time of signing the Franchise Agreement. It is important to note that Checkersrallys does not offer financing for the initial investment. The costs associated with converting an existing restaurant can vary widely based on factors such as the condition of the premises, local regulations, and labor costs.
Finally, the estimate includes $50,000 to $120,000 for additional funds to cover the first three months of operation. These funds are allocated for expenses such as employee wages, supplier payments, and utility bills. Prospective franchisees should carefully review each component of the initial investment and prepare for potential variations based on their specific location and circumstances.