Who directs the programs that the Checkers National Production Fund (NPF) finances?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The NPF may be incorporated or operated through a separate entity as we deem appropriate in our sole discretion. Any such entity will have all of the rights and duties as specified in this Section. We will direct all programs that the NPF finances, including, without limitation, the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The NPF may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce website and/or related strategies; administering regional and multi-regional marketing and advertising programs, including, without limitation, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
Although the NPF is intended to maximize general recognition and patronage of the Marks for the benefit of all Restaurants, we cannot assure you that any particular Restaurant will benefit directly or pro-rata from the placement of advertising. The NPF may be used to pay for the cost of preparing and producing materials and campaigns we select, including video, audio and written advertising and point-of-purchase ("POP") materials, and for the cost of employing advertising agencies, in house staff and supporting market research activities.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, Checkers directs all programs that the National Production Fund (NPF) finances. This includes creative concepts, materials, endorsements, and their placement across geographic areas, markets, and media channels.
The NPF may be used to cover various expenses, such as producing video, audio, and written materials, developing and maintaining e-commerce websites, managing regional and multi-regional marketing programs, purchasing advertising, and hiring advertising agencies and marketing advisors. The fund also supports public relations and market research activities.
While the NPF aims to boost brand recognition and customer traffic for all Checkers restaurants, the FDD states that Checkers cannot guarantee that any specific restaurant will directly or proportionally benefit from advertising efforts. This means that franchisees contribute to a collective fund, but the returns on investment may vary.
Checkers has the discretion to incorporate or operate the NPF through a separate entity, which would still be subject to the same rights and responsibilities outlined in the FDD. This structure allows Checkers flexibility in managing and administering the advertising and marketing efforts funded by the NPF.