Can the Checkers NPF be used to pay for materials and programs that Checkers provides?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
, which includes both "Checkers" and "Rally's" franchisees. We have the right to change or dissolve these groups.
Currently, NPF, Inc. directs all programs that the NPF finances, including the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The NPF may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce website and/or related strategies; administering regional and multi-regional marketing and advertising programs, including, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
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. The NPF may be used to pay for the cost of preparing and producing materials and programs we provide, including video, audio and written advertising and POP materials, and for the cost of employing advertising agencies and in house staff and supporting market research activities. Some of the same advertising materials created for or used by Checkers Restaurants may also be used by Rally's Restaurants. The NPF may furnish you with marketing, advertising and promotional materials (including POP materials) at cost, plus any related taxes and administrative, shipping, handling and storage charges.
The NPF for Restaurants 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 or NPF, Inc. may incur in activities related to the administration of the NPF and its programs (which includes system wide incentive programs), including conducting market research, preparing marketing materials and advertising campaigns and collecting and accounting for contributions to the NPF. NPF, Inc.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the National Production Fund (NPF) can be used to cover the costs of materials and programs that Checkers provides. NPF, Inc. directs all programs that the NPF finances, including the creative concepts, materials, and endorsements used, as well as their geographic, market, and media placement and allocation. The NPF may fund the preparation and production of video, audio, and written materials, electronic media, and the development and maintenance of e-commerce websites. It also covers the administration of regional and multi-regional marketing and advertising programs, including purchasing media advertising and using advertising agencies and advisors. The NPF supports public relations, market research, and other advertising, promotion, and marketing activities.
Specifically, the NPF may be used to pay for the cost of preparing and producing materials and programs Checkers provides, including video, audio, and written advertising and POP materials. It also covers the cost of employing advertising agencies and in-house staff and supporting market research activities. Some advertising materials created for Checkers Restaurants may also be used by Rally's Restaurants. Checkers may furnish franchisees with marketing, advertising, and promotional materials (including POP materials) at cost, plus any related taxes, administrative, shipping, handling, and storage charges.
For the fiscal year ended December 30, 2024, 33% of the NPF fund was allocated to production, which includes the development and production of advertising and promotional materials. 23% was used on digital and social media, 16% on research and development, 18% on field marketing activities, 1% on marketing technology, 2% on eCommerce maintenance, 3% on administrative expenses, and 3% on outside services. This breakdown illustrates how the NPF contributions are utilized to support various marketing and advertising initiatives for the Checkers brand.