What is the effect of the Checkers Existing Franchisee Incentive Addendum if the franchisee defaults under the Franchise Agreement?

According to Checkers' 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum includes specific repercussions if a franchisee fails to meet the requirements or breaches the agreement. If a Checkers franchisee fails to satisfy any of the criteria listed in Section 2 of the addendum or is later found to have violated or failed to satisfy them at any point during the term, Checkers has the right to enforce remedies.

In addition to other remedies available to Checkers under the Franchise Agreement, including termination, the franchisee must pay Checkers the amount or value of any fee reduction, discount, or other benefit afforded to them under the addendum. This payment is due no later than thirty days after written notice from Checkers.

This clause ensures that Checkers can recoup the financial benefits provided to the franchisee under the incentive program if the franchisee does not uphold their end of the agreement. This condition applies throughout the entire term of the franchise agreement, meaning that even after the restaurant opens, a failure to comply with the initial qualifications can trigger the repayment obligation.