Does the Checkers NPF spend money on advertising that solicits the sale of new franchises?

According to Checkers's 2025 Franchise Disclosure Document, the National Production Fund (NPF) does not allocate any funds towards advertising that primarily aims to solicit the sale of new franchises. The NPF is funded through contributions from franchisees, company-owned restaurants, and potentially some third-party vendors. Franchisees are required to contribute up to 3% of Net Sales to the NPF, payable semi-monthly, with the current monthly advertising fee being 2.65% of Net Sales, though this can be increased.

The NPF is used for creating and producing marketing materials and advertising campaigns to promote the Checkers brand. These materials are then made available to restaurants and advertising cooperatives, who are responsible for placing and buying the advertising through various media channels. The advertising is developed by Checkers' in-house advertising department. For the fiscal year ended December 30, 2024, the NPF allocated its funds as follows: 33% for production, 23% for digital and social media, 16% for research and development, 18% for field marketing activities, 1% for marketing technology, 2% for eCommerce maintenance, 3% for administrative expenses, and 3% for outside services.

This means that the fees franchisees pay into the NPF are specifically for marketing and advertising to attract customers to the restaurants, not to recruit new franchisees. While the NPF aims to maximize general recognition of the Checkers brand, there is no guarantee that any particular restaurant will directly benefit from the advertising. The franchisor also has the right to modify or terminate the NPF model, and in the event of termination, unspent monies would be distributed to Checkers and Rally's franchisees, as well as to the franchisor and its affiliates, in proportion to their contributions over the preceding 12-month period.