According to Checkers's 2025 Franchise Disclosure Document, if a franchisee breaches any of the criteria in Section 2 of the Addendum, they are obligated to make specific payments to Checkers. This obligation arises if the franchisee fails to satisfy or violates any of the criteria listed in Section 2 of the Addendum at any point during the term of the franchise agreement.

In such a case, the franchisee must pay Checkers the amount or value of any fee reduction, discount, or other benefit that was initially afforded to them under the Addendum. This payment must be made no later than thirty (30) days after receiving written notice from Checkers. This requirement is in addition to any other remedies that Checkers may pursue under the Franchise Agreement, including termination, or any remedies available under applicable law.

For a prospective Checkers franchisee, this means that any initial benefits received, such as fee reductions or discounts, are contingent upon compliance with the criteria in Section 2 of the Addendum. Failure to meet these criteria can result in a financial obligation to repay the value of those initial benefits. It is crucial for franchisees to understand and adhere to these criteria to avoid potential financial penalties and other legal repercussions.