How often are Checkersrallys franchisees required to pay the NPF contribution?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
is currently incorporated and operated through NPF Inc. NPF Inc. has all of the rights and duties described here. In addition to the Initial Advertising Deposit described in Item 5, you must contribute to the NPF amounts that are established by us from time to time, not to exceed 3% of Net Sales, which are payable semi-monthly at the same time as the royalty fees due under the Franchise Agreement. As of the issuance date of this Franchise Disclosure Document, you must contribute a monthly advertising fee (currently, 2.65%, but can be increased up to 3.0% of your Net Sales) to the NPF depending on the geographical area where your Franchised Restaurant is located (See Note 5 in Item 6). Other domestic franchisees contribute on the same basis to the NPF, except for certain operators of Rally's Restaurants operating under older forms of agreement. The NPF receives and administers monies from operators of Restaurants.
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, franchisees are required to contribute to the National Production Fund (NPF) semi-monthly. These payments are due at the same time as royalty fees, as stipulated in the Franchise Agreement.
The NPF contribution is determined by Checkersrallys, but it cannot exceed 3% of Net Sales. As of the FDD's issuance date, the monthly advertising fee is 2.65% of Net Sales, though this percentage can be adjusted up to the 3% maximum. The specific percentage may vary depending on the geographical location of the franchised restaurant.
All company-owned Checkersrallys restaurants also contribute to the NPF on the same basis as franchisees, although Checkersrallys and its affiliates are not obligated to continue doing so throughout the franchise term. This contribution structure ensures that both franchisees and the parent company support the advertising and marketing efforts managed through the NPF.