Who may administer the National Production Fund (NPF) for Checkers advertising development?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established and administer the NPF for the creation and production of marketing materials and preparation of advertising campaigns. The NPF is currently incorporated and operated through NPF Inc. NPF Inc. has all of the rights and duties described here.
We or our affiliate, NPF Inc., may administer a National Production Fund (the "NPF") for the development of advertising and related programs and materials (Franchise Agreement, Section 10.01).
Currently, NPF, Inc. directs all programs that the NPF finances, including the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation.
NPF, Inc. will use all interest earned on NPF contributions to pay costs before using the NPF's other assets.
NPF contributions may be used to pay for collection agents and institute legal proceedings to collect NPF contributions payable under the Franchise Agreement.
For the fiscal year ended December 30, 2024, 33% of the NPF fund was used to pay for production, which includes development and production of advertising and promotional materials; 23% was used on digital and social media; 16% was used on research and development; 18% was used on field marketing activities; 1% was used on marketing technology; 2% on eCommerce maintenance; 3% on administrative expenses; and 3% was used for outside services.
We have the right to establish local and/or regional advertising cooperatives for Checkers Restaurants and/or Rally's Restaurants.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers or its affiliate, NPF Inc., may administer the National Production Fund (NPF) for the development of advertising and related programs and materials. The NPF is used for the creation and production of marketing materials and preparation of advertising campaigns. NPF Inc. has all the rights and duties pertaining to the NPF.
NPF, Inc. directs all programs that the NPF finances, including the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. NPF, Inc. will use all interest earned on NPF contributions to pay costs before using the NPF's other assets. NPF contributions may be used to pay for collection agents and institute legal proceedings to collect NPF contributions payable under the Franchise Agreement.
Checkers has the right to establish local and/or regional advertising cooperatives for Checkers Restaurants and/or Rally's Restaurants. Geographical areas for co-ops are determined by Checkers's marketing department, and Checkers implements a co-op if it determines that a percentage of Net Sales of all Restaurants in the area can buy sufficient rating points in television, radio, outdoor, print and digital/social or some appropriate combination. Checkers has the right to form, change, dissolve or merge advertising cooperatives in its sole discretion.
For the fiscal year ended December 30, 2024, 33% of the NPF fund was used to pay for production, which includes development and production of advertising and promotional materials; 23% was used on digital and social media; 16% was used on research and development; 18% was used on field marketing activities; 1% was used on marketing technology; 2% on eCommerce maintenance; 3% on administrative expenses; and 3% was used for outside services.