Under what conditions can Checkersrallys defer or reduce contributions of a Restaurant to the National Promotion Fund (NPF)?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We may at any time defer or reduce contributions of a Restaurant and, upon thirty (30) days' prior written notice to you, reduce or suspend NPF contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the NPF. If we terminate the NPF, we will distribute all unspent monies to our "Checkers" and "Rally's" franchisees, and to us and our Affiliates, in proportion to their, and our, respective NPF contributions during the preceding twelve (12) month period, or as otherwise provided by the organizational documents of the NPF.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys retains the discretion to modify National Promotion Fund (NPF) contributions. Checkersrallys may, at any time, defer or reduce a restaurant's contributions to the NPF.
Additionally, Checkersrallys has the authority to reduce or suspend NPF contributions and operations for any length of time, provided they give franchisees thirty days' prior written notice. Checkersrallys can also terminate the NPF entirely and, if terminated, reinstate it later.
If Checkersrallys terminates the NPF, the remaining funds will be distributed to Checkers and Rally's franchisees, as well as to Checkersrallys and its affiliates. The distribution will be proportional to each party's NPF contributions over the preceding twelve-month period, or as otherwise specified in the NPF's organizational documents. This gives Checkersrallys considerable flexibility in managing the NPF and its impact on franchisees' financial obligations.