Will the Checkers National Production Fund (NPF) be accounted for separately from Checkers' other funds?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The NPF will be accounted for separately from our other funds and will not be used to defray any of our general operating expenses, except for reasonable salaries, administrative costs and overhead we may incur in activities related to the administration of the NPF and its programs, including conducting market research, preparing marketing materials and advertising campaigns and collecting and accounting for contributions to the NPF. We will use all interest earned on NPF contributions to pay costs before using the NPF's other assets. We may spend in any fiscal year an amount greater or less than the aggregate contributions of all Restaurants to the NPF in that year, and the NPF may borrow from us or other lenders (paying reasonable interest) to cover deficits in the NPF, or invest any surplus for future use by the NPF. We will prepare annually a statement of monies collected and costs incurred by the NPF and furnish you a copy upon your written request.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the National Production Fund (NPF) will be accounted for separately from Checkers' other funds. This means that the money contributed to the NPF will be tracked and managed independently. These funds are specifically designated for marketing, advertising, and promotional activities.
Checkers will not use the NPF to cover its general operating expenses. However, the brand can use the NPF to cover reasonable salaries, administrative costs, and overhead related to managing the NPF, including market research, preparing marketing materials, advertising campaigns, and collecting and accounting for NPF contributions. Any interest earned on NPF contributions will be used to pay costs before using the NPF's other assets.
Checkers has the flexibility to spend more or less than the total contributions to the NPF in any given fiscal year. To cover deficits, the NPF may borrow money from Checkers or other lenders, paying reasonable interest. Conversely, any surplus funds may be invested for future use by the NPF. Franchisees are entitled to receive a copy of the annual statement of monies collected and costs incurred by the NPF upon written request, providing transparency in how the funds are managed and spent.