Can Checkers or NPF, Inc. guarantee that a particular Checkers restaurant will benefit directly from NPF advertising?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Although the NPF is intended to maximize general recognition and patronage of the Marks for the benefit of all Restaurants, neither we nor NPF, Inc. can assure you that any particular Restaurant will benefit directly or pro-rata from the placement of advertising.
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, neither Checkers nor NPF, Inc. can guarantee that a specific Checkers restaurant will directly benefit from the National Production Fund (NPF) advertising efforts. The NPF aims to increase overall brand recognition and customer traffic for all restaurants, but there's no assurance that advertising placement will benefit each location equally or proportionally. This is a common practice in franchising, where advertising is often geared towards broad market reach rather than hyper-local impact.
The NPF directs all programs it finances, including creative concepts, materials, endorsements, and their placement in various markets and media. The fund covers expenses related to producing video, audio, written, and electronic materials, maintaining e-commerce websites, administering marketing programs, purchasing media advertising, and supporting public relations and market research. Some advertising materials created for Checkers may also be used by Rally's Restaurants, as both brands are under the same parent company.
Franchisees should recognize that while they are required to contribute to the NPF (up to 3% of Net Sales), the allocation of these funds and the resulting advertising strategies are at the discretion of Checkers and NPF, Inc. The FDD specifies that Checkers and its affiliates are not obligated to continue contributing to the NPF throughout the franchise term, and the NPF may also be used to promote other restaurant concepts owned or franchised by Checkers or its affiliates. This means that the benefits a franchisee sees from the NPF can vary and are not guaranteed.
Given this, prospective Checkers franchisees should carefully consider the potential benefits and risks associated with the NPF. It would be prudent to discuss with existing franchisees their experiences with the NPF and how they perceive its impact on their individual restaurant's performance. Additionally, franchisees should inquire about the process for suggesting or influencing advertising strategies within their local market.