Franchise Costs: Detailed Estimates of Checkers/Rally’s Franchise Costs (2018 FDD)

Updated July 11, 2018.

Detailed Estimates of Checkers/Rally’s Franchise Costs Based on Item 7 (Estimated Initial Investment) of Checkers/Rally’s 2018 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:  $10,000

3.  Restaurant Building Costs:  $293,895 to $400,000

• 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.

4.  Restaurant Building Shipping Costs:  $10,000 to $20,000

5.  Restaurant Equipment and Technology:  $194,000 to $200,000

• This line item reflects the franchisor’s estimate of the cost of equipment and technology, which includes a POS system and associated hardware (including at least 3 computerized cash registers, 4 printers, 1 back office computer and printer, 3 stand-alone credit card processing pin pads, and 3 bar code scanners) requiring an additional $11,000 to $25,000 and full line drive-thru timers (HME Zoom), requiring an additional $3,500.

6.  Signage Including Menu Boards:  $25,000 to $65,000

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:  $593,895 to $820,000

For Site Built, Conversion, and Used Modular Drive-Thru Restaurant

1.  Initial Franchise Fee:  $20,000 to $30,000

2.  Initial Advertising Deposit:  $10,000

3.  Restaurant Building:  $8,514 to $874,275

• 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.

4.  Restaurant Equipment and Technology:  $10,000 to $330,122

5.  Signage Including Menu Boards:  $6,900 to $161,868

6.  Inventory:  $1,000 to $5,000

7.  Additional Funds – 3 Months:  $40,000 to $90,000

8.  Total Estimated Initial Investment:  $96,414 to $1,501,265

For Endcap Strip Center or Gas/Convenience Restaurant

1.  Initial Franchise Fee:  $20,000 to $30,000

2.  Initial Advertising Deposit:  $10,000

3.  Restaurant Building:  $35,000 to $460,000

• 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. The estimated size
  of the restaurant is 2,000 to 3,000 square feet.

4.  Restaurant Equipment and Technology:  $28,953 to $218,045

5.  Signage Including Menu Boards:  $14,565 to $118,945

6.  Inventory:  $1,000 to $5,000

7.  Additional Funds – 3 Months:  $40,000 to $90,000

8.  Total Estimated Initial Investment:  $149,518 to $931,990

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:  $10,000

3.  Restaurant Building:  $64,975 to $373,950

• 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. The estimated size of the restaurant is 1,200 to 3,500 square feet.

4.  Restaurant Equipment and Technology:  $41,135 to $245,000

5.  Signage Including Menu Boards:  $2,340 to $118,038

6.  Inventory:  $1,000 to $5,000

7.  Additional Funds – 3 Months:  $40,000 to $90,000

8.  Total Estimated Initial Investment:  $179,450 to $871,988