For Checkers, what does the Area Franchisee represent and warrant regarding the list of Owners?

According to Checkers' 2025 Franchise Disclosure Document, an Area Franchisee must provide a complete and accurate list of all Owners, including their full names, mailing addresses, and a description of the nature and extent of each Owner's interest in the Area Franchisee. This list must be accurate and comprehensive, detailing the ownership stake of each individual or entity involved. This requirement ensures transparency and allows Checkers to understand the ownership structure of its Area Franchisees.

Furthermore, the Area Franchisee and each Owner must represent and warrant that each Owner is the sole and exclusive legal and beneficial owner of their ownership interest. This means that the ownership interest must be free and clear of all liens, restrictions, agreements, and encumbrances, except those specifically required or permitted by the Area Franchise Agreement. This provision protects Checkers from potential disputes or claims related to the ownership of the Area Franchise.

In essence, Checkers requires Area Franchisees to vouch for the accuracy and clarity of their ownership structure, ensuring that all ownership interests are legally sound and free from any undisclosed claims or liabilities. This helps Checkers maintain control over its brand and network by knowing exactly who is involved in each Area Franchise and that those owners have clear title to their ownership stake.