According to Checkers's 2025 Franchise Disclosure Document, the Existing Franchisee Incentive Addendum includes specific conditions regarding the transfer of a franchise agreement. If a Checkers franchisee requests and receives approval for a transfer of the franchise agreement before opening the franchised restaurant, they must pay Checkers the full standard amount of the initial franchise fee. This amount is measured as of the effective date of the Franchise Agreement and represents the amount that was initially reduced or waived under the Existing Franchisee Incentive Addendum. This payment is required as a pre-closing condition of the transfer, in addition to any other transfer fees that may be payable.

This condition means that the initial franchise fee reduction is contingent upon the franchisee actually opening and operating the restaurant. If the franchisee decides to transfer the agreement before opening, the incentive is effectively nullified, and the franchisee must reimburse Checkers for the previously waived fee. This policy ensures that the incentive benefits franchisees who are committed to establishing and running a Checkers restaurant, rather than those who might seek to quickly flip the franchise rights.

For a prospective Checkers franchisee, this has important implications. It highlights the need to be fully committed to opening and operating the franchise before seeking the incentive. Franchisees should carefully consider their plans and capabilities before signing the addendum, as a premature decision to transfer the agreement will result in a significant financial obligation. This clause protects Checkers from franchisees who might try to take advantage of the incentive without the intention of fulfilling the operational requirements of the franchise agreement.