In the Checkersrallys FDD, what does the abbreviation 'NPF' stand for?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
"NPF" – The "National Production Fund," as further described in Section 10.01.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, NPF stands for "National Production Fund." This fund is further detailed in Section 10.01 of the FDD.
The National Production Fund is used for the creation and production of marketing materials and advertising campaigns. Franchisees are required to contribute to the NPF, with contributions not exceeding three percent (3%) of Net Sales, payable semi-monthly along with royalty fees. These contributions, along with an Initial Advertising Deposit of $15,000 for new restaurants, are used to finance various marketing activities.
Checkersrallys directs all programs financed by the NPF, including the creative concepts, materials, endorsements, and their placement. The NPF may cover expenses related to video, audio, and written materials, electronic media, website maintenance, regional marketing programs, and public relations. The NPF may be incorporated or operated through a separate entity at Checkersrallys's discretion. The Initial Advertising Deposit is used to purchase advertising and promotions for the Franchised Restaurant, and to cover the types of expenses incurred by the NPF relating to the Franchised Restaurant.