Do any third-party vendors contribute to the Checkers National Production Fund?

According to Checkers' 2025 Franchise Disclosure Document, some third-party vendors contribute to the National Production Fund (NPF). The NPF is used for the creation and production of marketing materials and advertising campaigns. Franchisees are required to contribute to the NPF, with the amount determined by Checkers, but not exceeding 3% of Net Sales. As of the FDD's issuance date, the monthly advertising fee is 2.65% of Net Sales, but can be increased up to 3.0%, depending on the restaurant's geographical location.

Other franchisees and company-owned Checkers restaurants also contribute to the NPF on the same basis as franchisees, although Checkers and its affiliates are not obligated to do so. The NPF is administered by NPF Inc. and receives monies from restaurant operators. The funds are used to develop advertising materials and campaigns, which are then made available to restaurants and advertising cooperatives for placement in various media outlets.

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. The NPF is accounted for separately from Checkers' other funds and will not be used for general operating expenses, except for reasonable salaries and administrative costs related to the NPF's administration.