Can an entity required to comply with the Securities Exchange Act of 1934 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 the transfer of a franchise to entities that are subject to the reporting requirements of this Act.

This condition ensures that Checkers maintains control over who becomes a franchisee and avoids potential complications associated with publicly traded or heavily regulated entities. By preventing such entities from becoming franchisees, Checkers may be aiming to simplify its franchise network and reduce the administrative burden of dealing with companies subject to extensive securities regulations.

For a prospective franchisee, this restriction means that if they plan to transfer their franchise in the future, they cannot transfer it to a company that is required to comply with the Securities Exchange Act of 1934. This could limit the pool of potential buyers and should be considered when making the initial decision to invest in a Checkers franchise.