Does Checkers' approval of a franchise transfer release the transferring franchisee and their Owners from claims or waive their obligation to ensure the transferee's compliance?

According to Checkers' 2025 Franchise Disclosure Document, Checkers' approval of a franchise transfer does not release the transferring franchisee and their Owners from claims or waive their obligation to ensure the transferee's compliance. Specifically, Checkers' approval of a transfer does not represent the fairness of the terms between the transferor and transferee, nor does it guarantee the transferee's success.

Furthermore, Checkers' approval does not waive any claims against the transferring franchisee or their Owners. It also does not waive Checkers' right to demand the transferee's strict adherence to the franchise agreement. This means that even after a transfer is approved, the original franchisee and their Owners may still be held liable for any breaches or non-compliance, and Checkers retains the right to enforce the agreement against the new franchisee.

It is important to note that any approval granted by Checkers applies solely to the specific transfer being proposed and has no bearing on any other potential transfers of the franchise. This ensures that each transfer is evaluated independently and does not set a precedent for future transactions. This provision protects Checkers' interests by ensuring continued compliance with the franchise agreement, even after a transfer of ownership.