When are the National Production Fund Contributions due for a Checkersrallys franchise?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS (See Note 1) |
|---|---|---|---|
| Royalty | 4% of your Net Sales | Semi-monthly, | Net Sales is defined in Note 2 |
| or 2% of your Net | on or before the | below. See Note 2 for the | |
| Sales if you operate a | 5th and 20th | 2025 Growth Incentive | |
| Restaurant from a | day of each | Program and Reimage | |
| Non-Traditional Site. | month. | Incentive Program. | |
| National Production Fund Contributions (See Notes 3 and 4) | You will be required to pay up to 3% of your Net Sales (currently, 2.65% of your Net Sales). | Monthly, on the 5th day of each month. | Varies. The amount is credited toward your 4.5% advertising expenditure requirement. Your contribution rate is subject to change from time to time. |
Source: Item 6 — OTHER FEES (FDD pages 21–29)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to make National Production Fund (NPF) contributions monthly. These contributions are due on the 5th day of each month. The contribution amount can be up to 3% of the restaurant's Net Sales; however, the current rate is 2.65% of Net Sales.
These NPF contributions are credited toward the franchisee's overall advertising expenditure requirement, which is 4.5% of Net Sales. This means that the NPF contributions count as part of the total amount a franchisee must spend on advertising and marketing for their Checkersrallys restaurant. The contribution rate is subject to change.
Prospective franchisees should be aware that the NPF contributions are just one component of the overall advertising and marketing expenses. If a Checkersrallys restaurant is part of a regional or local advertising cooperative, the franchisee may be required to contribute to that co-op as well, potentially exceeding the 4.5% minimum advertising expenditure. Franchisees should carefully consider these advertising costs when evaluating the financial feasibility of a Checkersrallys franchise.