Updated September 15, 2019.
Detailed Estimates of Checkers/Rally’s Franchise Costs Based on Item 7 (Estimated Initial Investment) of Checkers/Rally’s 2019 Franchise Disclosure Document
- 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. The franchisor is unable to estimate the cost of purchasing and developing a site for a Restaurant, as it will vary considerably depending on such factors as the location and size of the site and the local real estate market.
For New Modular Design Single Drive-Thru Restaurant
1. Initial Franchise Fee: $20,000 to $30,000
2. Initial Advertising Deposit: $5,000
3. Restaurant Building Costs: $297,000 to $397,000
- This line item reflects the franchisor’s estimate of the cost of constructing a single modular drive-thru restaurant which is manufactured and shipped to the Premises, with an estimated size of approximately 954 square feet for the building on a site of approximately 13,000 to 26,000 square feet.
- The “Restaurant Building” estimate includes the cost of the building and building assembly, but excludes soft costs, such as due diligence, survey, A&E, permit and impact fees, and for on-site construction, which vary considerably depending on factors such as site-specific requirements and material and labor costs variations due to region.
4. Restaurant Building Shipping Costs: $8,900 to $35,000
5. Restaurant Equipment and Technology: $140,000 to $210,000
- This line item reflects the franchisor’s estimate of the cost of equipment and technology, which includes a POS system and associated hardware.
6. Signage Including Menu Boards: $18,000 to $45,000
7. Inventory: $1,000 to $5,000
- This estimate is net of supplier discounts of approximately $4,000 on the initial order of food products and supplies.
8. Additional Funds – 3 Months: $40,000 to $90,000
- This is an estimate, based on the franchisor’s 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 $50,000 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 the franchisor cannot assure you that you will not have additional expenses in starting the Franchised Restaurant.
9. Total Estimated Initial Investment: $529,900 to $817,000
For Site Built or Conversion Restaurant
1. Initial Franchise Fee: $20,000 to $30,000
2. Initial Advertising Deposit: $5,000
3. Restaurant Building Costs: $45,000 to $550,000
- This line item reflects the franchisor’s estimate of the cost of (1) constructing a single drive-thru restaurant, or (2) converting a freestanding drive-thru restaurant of another brand to a Checkers Restaurant or Rally’s Restaurant. The estimated size of the building is 800 to 3,000 square feet and the estimated size of the lot is 13,000 to 30,000 square feet.
- This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as site-specific requirements, material and labor costs, and variations depending on your region and your specific location.
- This estimate also includes soft costs, such as due diligence, surveys, fees for architects and engineers, and permit and impact fees.
4. Restaurant Equipment and Technology: $82,000 to $220,000
5. Signage Including Menu Boards: $18,000 to $45,000
6. Inventory: $1,000 to $5,000
7. Additional Funds – 3 Months: $40,000 to $90,000
8. Total Estimated Initial Investment: $211,000 to $945,000
For Endcap Strip Center or Gas/Convenience Restaurant
1. Initial Franchise Fee: $20,000 to $30,000
2. Initial Advertising Deposit: $5,000
3. Restaurant Building Costs: $83,000 to $250,000
- This line item reflects the franchisor’s estimate of the cost of constructing an endcap restaurant in a strip-center, retail gas station, or convenience store with a single drive-thru.
- This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as site-specific requirements, material and labor costs, and variations depending on your region and your specific location.
- This estimate also includes soft costs, such as due diligence, surveys, fees for architects and engineers, and permit and impact fees which also vary by municipality.
- The estimated size of the restaurant is 2,000 to 3,000 square feet.
4. Restaurant Equipment and Technology: $82,000 to $197,000
5. Signage Including Menu Boards: $18,000 to $45,000
6. Inventory: $1,000 to $5,000
7. Additional Funds – 3 Months: $40,000 to $90,000
8. Total Estimated Initial Investment: $249,000 to $622,000
For Non-Traditional, Walmart, or In-Line Restaurant in High Density Market
1. Initial Franchise Fee: $20,000 to $30,000
2. Initial Advertising Deposit: $5,000
3. Restaurant Building Costs: $67,000 to $157,000
- This line item reflects the franchisor’s estimate of the cost of constructing a restaurant at a Non-Traditional Site, Walmart, or in-line location without any drive-thru in a high-density market.
- This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as site-specific requirements, material and labor costs, and variations depending on your region and your specific location.
- This estimate also includes soft costs, such as due diligence, surveys, fees for architects and engineers, and permit and impact fees which also vary by municipality.
- The estimated size of the restaurant is 1,200 to 3,500 square feet.
4. Restaurant Equipment and Technology: $63,000 to $167,000
5. Signage Including Menu Boards: $7,600 to $15,000
6. Inventory: $1,000 to $5,000
7. Additional Funds – 3 Months: $40,000 to $90,000
8. Total Estimated Initial Investment: $203,600 to $469,000
Leave a Reply