Who is considered an 'Owner' in the context of transferring a Checkers franchise?

According to Checkers' 2025 Franchise Disclosure Document, an 'Owner' is defined as any person or entity with a direct or indirect legal or beneficial ownership interest in the franchisee, especially if the franchisee is a business corporation, partnership, limited liability company, or other legal entity. This definition is crucial in the context of transferring a Checkers franchise because the franchisor's approval is required for any transfer of ownership, and the conditions for approval extend to the owners as well.

Specifically, Checkers requires that neither the franchisee nor any of its owners may transfer the franchise without the franchisor's approval and compliance with all provisions outlined in Section 13 of the franchise agreement. This includes providing requested information, meeting character and financial resource standards, and agreeing to be bound by the franchise agreement. Furthermore, owners may be required to execute a general release of claims against Checkers and its affiliates as part of the transfer process.

These stipulations ensure that Checkers maintains control over who operates its franchises and that any new owners meet the brand's standards. The FDD also specifies that even with approval of a transfer, Checkers does not represent the fairness of the transfer terms or waive its right to demand exact compliance with the agreement from the new owner. This comprehensive oversight protects Checkers' interests and the integrity of its franchise system during ownership transitions.