Who bears the expense of collection agents and legal proceedings to collect Checkers NPF contributions?

According to Checkers's 2025 Franchise Disclosure Document, the National Production Fund (NPF) bears the expense of collection agents and legal proceedings used to collect NPF contributions. Checkers has the right, but not the obligation, to use collection agents or legal proceedings to collect these contributions.

This means that if a Checkers franchisee fails to make required contributions to the NPF, Checkers can take action to collect those funds. However, the costs associated with these collection efforts, such as hiring collection agencies or pursuing legal action, are paid by the NPF itself, not directly by Checkers or the franchisee being pursued for the unpaid contributions.

This arrangement protects Checkers franchisees from incurring additional expenses beyond the original NPF contribution amount if they fall behind on payments and collection efforts are initiated. It also clarifies that Checkers is not obligated to pursue collection, providing them with the flexibility to manage the NPF funds and prioritize collection efforts as they see fit. The NPF also has the right to forgive, waive, settle, and compromise claims.