Can Checkersrallys assure franchisees that their particular restaurant will benefit directly from the placement of advertising funded by the NPF?

According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees cannot be assured that their specific restaurant will directly benefit from advertising funded by the National Production Fund (NPF). While the NPF aims to maximize recognition of the Checkersrallys brand for all restaurants, neither Checkersrallys nor NPF, Inc. guarantees that any individual restaurant will benefit directly or proportionally from advertising placement. This means that even though franchisees contribute to the NPF, the advertising strategies and placement are determined by NPF, Inc., and Checkersrallys, and the resulting benefits may vary for each location.

The NPF is used for various advertising and marketing activities, including creating materials, running campaigns, and supporting market research. These funds may also cover the costs of advertising agencies and in-house staff. While Checkersrallys values input from the franchise network and may seek advice from restaurant operators through the Franchisee Advisory Council, the final decisions regarding the use of NPF funds rest with Checkersrallys and NPF, Inc. This setup is typical in many franchise systems, where a national advertising fund is used to promote the brand as a whole, rather than focusing on individual locations.

This arrangement carries implications for prospective franchisees. While contributing to the NPF is mandatory, franchisees should recognize that the advertising spend may not directly correlate with increased business at their specific location. The FDD also states that the NPF may be used to promote other restaurant concepts that Checkersrallys or its affiliates own or franchise. Franchisees need to assess whether they are comfortable with this arrangement, where advertising funds are pooled and used at the discretion of Checkersrallys and NPF, Inc., without a guarantee of direct benefit to their restaurant. It is important for potential franchisees to consider this when evaluating the overall value and potential return on investment of a Checkersrallys franchise.