Is the Checkersrallys NPF permitted to spend money on advertising that solicits the sale of new franchises?

According to the 2025 Checkersrallys Franchise Disclosure Document, the National Production Fund (NPF) does not allocate any funds towards advertising that primarily aims to solicit the sale of new franchises. This means the NPF's resources are focused on promoting the Checkersrallys brand and supporting existing franchise locations rather than recruiting new franchisees.

For a prospective Checkersrallys franchisee, this indicates that the advertising fees they contribute to the NPF will be used for general brand marketing and promotional activities intended to drive customer traffic and sales at their restaurant. The funds are used for creating marketing materials, advertising campaigns, and related programs that benefit the Checkersrallys system as a whole. The FDD specifies that for the fiscal year ended December 30, 2024, the NPF allocated funds to various areas including production (33%), digital and social media (23%), research and development (16%), and field marketing activities (18%).

It's important to note that while the NPF focuses on brand promotion, Checkersrallys franchisees may also be required to participate in local advertising initiatives and contribute to advertising cooperatives. These local efforts, combined with the national campaigns funded by the NPF, aim to provide a comprehensive marketing strategy for Checkersrallys restaurants. Franchisees should inquire about the specifics of local advertising requirements and cooperative opportunities in their target market to fully understand their advertising obligations and potential benefits.