How are the National Production Fund Contributions credited for a Checkers franchise?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Royalty | 4% of your Net Sales | Semi-monthly, | Net Sales is defined in Note 2 |
| or 2% of your Net | on or before the | below. See Note 2 for the | |
| Sales if you operate a | 5th and 20th | 2025 Growth Incentive | |
| Restaurant from a | day of each | Program and Reimage | |
| Non-Traditional Site. | month. | Incentive Program. | |
| National Production Fund Contributions (See Notes 3 and 4) | You will be required to pay up to 3% of your Net Sales (currently, 2.65% of your Net Sales). | Monthly, on the 5th day of each month. | Varies. The amount is credited toward your 4.5% advertising expenditure requirement. Your contribution rate is subject to change from time to time. |
| Cooperative Advertising (See Notes 4 and 5) | Determined by your local or regional advertising cooperative. | Monthly, on the 5th day of each month. | Payments to local or regional advertising cooperatives are credited toward your 4.5% advertising expenditure requirement. |
Source: Item 6 — OTHER FEES (FDD pages 21–30)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, National Production Fund (NPF) contributions are credited toward the franchisee's overall advertising expenditure requirement. Checkers requires franchisees to spend 4.5% of their Net Sales on advertising and marketing. The NPF contribution, along with contributions to regional or local advertising cooperatives and any local marketing expenses, count toward fulfilling this 4.5% requirement.
The NPF contribution rate is currently 2.65% of Net Sales, although the FDD states that this rate is subject to change. Franchisees pay this contribution monthly, on the 5th day of each month. If a Checkers restaurant is in an area without an advertising cooperative, the franchisee must spend the difference between the NPF contribution rate and the 4.5% advertising requirement on local marketing. Alternatively, Checkers may require the franchisee to contribute that difference to an advertising purchasing collective established and controlled by Checkers.
It's important to note that advertising expenditures may exceed 4.5% of Net Sales if the franchisee is part of a regional or local advertising cooperative with contribution rates that, when combined with the NPF contribution, surpass the 4.5% threshold. Franchisees may also choose to spend additional amounts on local marketing beyond the required contributions. This structure ensures that Checkers franchisees invest in advertising and marketing, with flexibility in how those funds are allocated between national, regional, and local efforts.