What agreement must the transferee of Checkers Development Rights agree to be bound by?

According to Checkers' 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their development rights, the transferee must agree to be bound by all the provisions of the existing Development Rights Agreement for the remainder of its term. This means the new party taking over the development rights assumes all responsibilities, obligations, and conditions outlined in the original agreement.

This requirement ensures continuity and protects Checkers' interests by maintaining the original terms of the development agreement. The transferee steps into the shoes of the original franchisee, agreeing to uphold the development schedule, operational standards, and other stipulations. This provision prevents a transfer to an entity that might not adhere to Checkers' standards or fulfill the development obligations.

For a prospective Checkers franchisee, this condition highlights the importance of understanding the full scope of the Development Rights Agreement before considering a transfer. Both the transferor and transferee need to carefully review the agreement to ensure they are aware of all the terms and conditions. The transfer is contingent upon the transferee's willingness to accept these terms, making due diligence crucial for all parties involved.