Can an entity required to comply with the Securities Exchange Act of 1934 be a transferee of Checkers Development Rights?

According to Checkers's 2025 Franchise Disclosure Document, a proposed transferee of development rights cannot be an entity, or 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 condition is one of several that Checkers imposes on the transfer of development rights.

This restriction means that if a potential buyer of Checkers development rights is a publicly traded company or an entity that otherwise has to file reports with the SEC, Checkers will not approve the transfer. This requirement ensures that the franchisee remains a privately held entity, which may allow Checkers to maintain closer control and oversight.

For a prospective franchisee, this condition limits the pool of potential buyers if they decide to sell their development rights. It is important to consider this restriction when evaluating the long-term value and exit strategy associated with a Checkers franchise.