For Checkersrallys, does the franchisor have an obligation to use collection agents to collect NPF contributions?

According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys has the right, but not the obligation, to use collection agents and institute legal proceedings to collect National Production Fund (NPF) contributions. This means Checkersrallys is not required to pursue collection through agents or legal action if a franchisee fails to contribute to the NPF. Checkersrallys also has the authority to forgive, waive, settle, and compromise claims related to the NPF.

This discretion gives Checkersrallys flexibility in managing the NPF and dealing with franchisees who may be delinquent in their contributions. It also means that Checkersrallys can decide on a case-by-case basis whether to pursue collection or to offer some form of settlement or waiver. However, Checkersrallys assumes no direct or indirect liability or obligation with respect to the maintenance, direction, or administration of the NPF and does not act as a trustee or in any fiduciary capacity with respect to the NPF.

For a prospective franchisee, this implies that while contributions to the NPF are mandatory, the franchisor's enforcement of these contributions is not guaranteed. Checkersrallys could choose not to pursue collection from some franchisees, potentially creating an uneven playing field. Therefore, it is crucial for franchisees to understand their obligations regarding NPF contributions and to factor this into their financial planning. Franchisees should also be aware that Checkersrallys's decision to enforce or waive contributions for some does not create a legal precedent or expectation for others.