Is an entity required to comply with the Securities Exchange Act of 1934 eligible to be a Checkers franchisee transferee?

According to Checkers' 2025 Franchise Disclosure Document, a proposed transferee may not be an entity, or be affiliated with an entity, that is required to comply with the reporting and information requirements of the Securities Exchange Act of 1934, as amended. This means that Checkers restricts certain types of entities from becoming franchisees.

This condition is part of Checkers' broader approval process for franchise transfers. The franchisor aims to ensure that new franchisees meet specific criteria related to business experience, financial resources, and overall suitability. By excluding entities subject to the Securities Exchange Act of 1934, Checkers may be attempting to avoid the complexities associated with publicly traded or heavily regulated organizations.

For a prospective franchisee, this requirement means that if their business structure is such that it must comply with the reporting and information requirements of the Securities Exchange Act of 1934, they would not be eligible to become a Checkers franchisee through a transfer. Individuals considering a Checkers franchise should carefully review their business structure and consult with legal and financial advisors to ensure compliance with Checkers' transfer requirements.