What costs can the Checkersrallys NPF be used to pay for?
Checkersrallys 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 46–57)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the National Production Fund (NPF) is used for various advertising, marketing, and promotional activities. NPF, Inc. directs all programs financed by the NPF, including creative concepts, materials, endorsements, and their placement. The NPF may cover the costs of preparing and producing video, audio, and written materials, as well as electronic media. It can also be used for developing, implementing, and maintaining e-commerce websites and related strategies.
Additionally, the NPF may administer regional and multi-regional marketing and advertising programs, including purchasing trade journal, direct mail, and other media advertising. It can also cover the costs of using advertising, promotion, and marketing agencies, as well as other advisors. The NPF supports public relations, market research, and other advertising, promotion, and marketing activities. The fund can also be used to pay collection agents and legal proceedings to collect NPF contributions payable under the Franchise Agreement.
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, and 18% on field marketing activities. A smaller percentage was allocated to marketing technology (1%), eCommerce maintenance (2%), administrative expenses (3%), and outside services (3%).
It is important to note that the NPF may also be used to promote other restaurant concepts owned or franchised by Checkersrallys or its affiliates. While the NPF aims to maximize recognition and patronage of the brand for all restaurants, Checkersrallys does not guarantee that any particular restaurant will directly benefit from the advertising efforts.