What must certificates representing ownership interests in a Checkers franchise bear?

According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is a business entity, any certificates representing direct or indirect ownership interests must include a legend. This legend should conform to applicable law and must explicitly state or reference the restrictions on ownership imposed by the franchise agreement.

This requirement ensures that all owners are aware of the limitations and obligations associated with their ownership stake in the Checkers franchise. These restrictions are put in place to protect Checkers' brand standards and the integrity of its franchise system. By including this legend, Checkers aims to prevent unauthorized transfers of ownership or other actions that could negatively impact the franchise.

For a prospective Checkers franchisee, this means ensuring that all organizational documents, especially those related to ownership, clearly reflect these restrictions. Failure to comply with this requirement could potentially lead to legal issues or disputes with Checkers. Franchisees should work closely with their legal counsel to ensure full compliance with this provision.

This is a fairly standard practice in franchising, as franchisors typically want to maintain control over who owns and operates their franchises to protect their brand and system. The specific wording of the legend may vary depending on applicable state laws, so it's important to consult with legal counsel to ensure compliance.