factual

What is the name of the entity that currently administers the Checkers National Production Fund?

Checkers Franchise · 2025 FDD

Answer 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. In addition to the Initial Advertising Deposit described in Item 5, you must contribute to the NPF amounts that are established by us from time to time, not to exceed 3% of Net Sales, which are payable semi-monthly at the same time as the royalty fees due under the Franchise Agreement. As of the issuance date of this Franchise Disclosure Document, you must contribute a monthly advertising fee (currently, 2.65%, but can be increased up to 3.0% of your Net Sales) to the NPF depending on the geographical area where your Franchised Restaurant is located (See Note 5 in Item 6). Other domestic franchisees contribute on the same basis to the NPF, except for certain operators of Rally's Restaurants operating under older forms of agreement. The NPF receives and administers monies from operators of Restaurants. All company-owned Checkers Restaurants and Rally's Restaurants also currently contribute on the same basis as franchisees to the NPF, but we and our affiliates are not obligated to do so (or to continue doing so throughout your franchise term). Some third party vendors also contribute to the NPF. The NPF does not spend any money on advertising that is principally a solicitation for the sale of new franchises. Neither we nor NPF, Inc. are required to spend any amount on advertising in your market area.

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, the National Production Fund (NPF) is administered by NPF Inc. Checkers established the NPF to handle the creation and production of marketing materials and advertising campaigns. NPF Inc. is incorporated and operated specifically for this purpose, possessing all associated rights and responsibilities.

As a Checkers franchisee, you are required to contribute to the NPF. These contributions, along with those from other franchisees and company-owned restaurants, are used to finance advertising and marketing efforts. The contribution amount is determined by Checkers, but cannot exceed 3% of Net Sales. As of the FDD's issuance date, the monthly advertising fee is 2.65% of Net Sales, though this percentage can be increased up to the 3% maximum.

NPF Inc. has the authority to direct all programs financed by the NPF, including creative concepts, materials, and their placement. While the NPF aims to maximize brand recognition and patronage for all restaurants, Checkers and NPF Inc. do not guarantee that any specific restaurant will directly benefit from advertising placement. Franchisees should be aware that the NPF may also be used to promote other restaurant concepts owned or franchised by Checkers or its affiliates.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.