Are company-owned Checkers restaurants obligated to contribute to the NPF?

According to Checkers's 2025 Franchise Disclosure Document, company-owned Checkers and Rally's restaurants currently contribute to the National Production Fund (NPF) on the same basis as franchisees. However, Checkers and its affiliates are not obligated to do so, nor are they required to continue contributing throughout the franchisee's term. This means that while company-owned restaurants are currently contributing to the NPF, Checkers retains the right to change this policy at any time.

The NPF is used for the creation and production of marketing materials and advertising campaigns. Franchisees are required to contribute to the NPF, with contributions not to exceed 3% of Net Sales. As of the issuance date of the FDD, the monthly advertising fee is 2.65% of Net Sales but can be increased up to 3.0%, depending on the restaurant's geographical location.

This policy regarding company-owned restaurant contributions could impact the overall funding and resources available for marketing and advertising efforts managed by the NPF. If Checkers chooses to discontinue contributions from its company-owned restaurants, it could potentially shift a greater burden of funding onto the franchisees. Prospective franchisees should consider this potential change and its possible effects on marketing support and costs.