Is Checkersrallys required to seek advice from franchisees regarding the creative concepts and media used for programs financed by the NPF?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor NPF, Inc. have created an advisory council and we and NPF, Inc. are not obligated to seek the advice of owners of Restaurants, including franchisees, by formal (e.g., advisory council or other representative body) or informal means with respect to the creative concepts and media used for programs financed by the NPF. However, because we value input from the franchise network, we (and/or NPF, Inc.) may choose to seek such advice from operators of Restaurants, and so have established a Franchisee Advisory Council that includes a marketing subcommittee. We appoint the members of the Franchisee Advisory Council, which includes both "Checkers" and "Rally's" franchisees. We have the right to change or dissolve these groups.
Currently, NPF, Inc. directs all programs that the NPF finances, including the creative concepts, materials, and endorsements used and their geographic, market, and media placement and allocation. The NPF may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining an electronic commerce website and/or related strategies; administering regional and multi-regional marketing and advertising programs, including, purchasing trade journal, direct mail, and other media advertising and using advertising, promotion, and marketing agencies and other advisors to provide assistance; and supporting public relations, market research, and other advertising, promotion, and marketing activities.
Although the NPF is intended to maximize general recognition and patronage of the Marks for the benefit of all Restaurants, neither we nor NPF, Inc. can assure you that any particular Restaurant will benefit directly or pro-rata from the placement of advertising. The NPF may be used to pay for the cost of preparing and producing materials and programs we provide, including video, audio and written advertising and POP materials, and for the cost of employing advertising agencies and in house staff and supporting market research activities. Some of the same advertising materials created for or used by Checkers Restaurants may also be used by Rally's Restaurants. The NPF may furnish you with marketing, advertising and promotional materials (including POP materials) at cost, plus any related taxes and administrative, shipping, handling and storage charges.
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, neither Checkersrallys nor NPF, Inc. are obligated to seek advice from franchisees regarding the creative concepts and media used for programs financed by the National Production Fund (NPF). This means Checkersrallys has no formal requirement to consult franchisees on advertising and marketing strategies. However, Checkersrallys values input from the franchise network and may choose to seek such advice from restaurant operators.
Checkersrallys has established a Franchisee Advisory Council that includes a marketing subcommittee. The members of this council are appointed by Checkersrallys, and it includes both "Checkers" and "Rally's" franchisees. Checkersrallys retains the right to change or dissolve these groups. This council provides a potential avenue for franchisees to offer input, but Checkersrallys is not bound to follow their advice.
NPF, Inc. currently directs all programs that the NPF finances, including the creative concepts, materials, and endorsements used, as well as their geographic, market, and media placement and allocation. The NPF may fund various marketing and advertising activities, including preparing materials, maintaining websites, administering marketing programs, and supporting public relations and market research. While the NPF aims to benefit all restaurants, Checkersrallys cannot guarantee that any particular restaurant will directly benefit from advertising placement. This structure gives Checkersrallys significant control over marketing initiatives while allowing for franchisee input through the advisory council, although such input is not mandatory.