For Checkers, what is the duration of the restriction preventing engagement in activities proscribed in Section 9.02 after a transfer's effective date?

According to Checkers's 2025 Franchise Disclosure Document, if you transfer your development rights, you (and your Immediate Family) are restricted from engaging in activities proscribed in Section 9.02 for two years, starting on the effective date of the transfer. This restriction is one of the conditions Checkers imposes on the transfer.

Section 9.02 outlines post-term covenants, which include prohibitions on owning a legal or beneficial interest in, or providing services or advice to, any Competitive Business operating within the Development Area or within a three-mile radius of any Checkers or Rally's restaurant. It also restricts involvement with any entity that grants franchises or licenses for Competitive Businesses. These covenants are acknowledged as necessary to protect Checkers's interests in the System, customer base, and goodwill associated with its Marks.

This non-compete agreement ensures that former franchisees do not leverage their knowledge of the Checkers system to directly compete with the brand shortly after transferring their rights. The agreement also states that if a franchisee breaches the non-compete agreement, the obligations under the breached covenant will be tolled during the period of the breach and will continue in effect for a period of 2 years after the date of order enforcing the covenant.