Besides the franchisee, who else is required to grant Checkers a release and covenant not to sue?

According to Checkers' 2025 Franchise Disclosure Document, in addition to the franchisee, Checkers is entitled to a release and covenant not to sue from the franchisee's owners. This means that any individuals or entities who have an ownership stake in the franchise business must also agree not to take legal action against Checkers.

This requirement ensures that Checkers is protected from potential legal claims not only from the franchisee directly but also from those who have a financial interest in the franchise. By obtaining a release and covenant not to sue from the owners, Checkers aims to prevent future litigation that could arise from issues related to the franchise agreement or the operation of the Checkers restaurant.

It is important for prospective Checkers franchisees to understand that this obligation extends beyond themselves and includes their owners. Franchisees should ensure that their owners are fully aware of this requirement and are willing to sign the necessary release and covenant not to sue. This is a standard practice in franchising, as franchisors seek to protect themselves from legal liabilities involving multiple parties associated with the franchise.