For Checkersrallys, what costs are covered before using the NPF's other assets?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The NPF 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 may incur in activities related to the administration of the NPF and its programs, including conducting market research, preparing marketing materials and advertising campaigns and collecting and accounting for contributions to the NPF. We will use all interest earned on NPF contributions to pay costs before using the NPF's other assets.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 FDD, Checkersrallys details how the National Production Fund (NPF) is managed and what expenses are covered. Before Checkersrallys uses the NPF's other assets, all interest earned on NPF contributions will be used to pay costs.
This means that any interest accrued from the contributions made to the NPF is the first source of funds used to cover expenses related to the fund's operation. These expenses can include the costs of preparing and producing marketing materials, advertising campaigns, employing advertising agencies and staff, and supporting market research activities.
Checkersrallys retains the flexibility to manage the NPF, including spending more or less than the aggregate contributions in any fiscal year. The NPF may also borrow funds or invest surpluses. An annual statement of monies collected and costs incurred by the NPF will be provided to franchisees upon written request, ensuring transparency in the fund's management.