If the Checkers franchisee executed the agreement pursuant to a development agreement, what must the transferee acquire?

According to Checkers's 2025 Franchise Disclosure Document, if a franchisee originally entered into the franchise agreement under a development agreement, any transfer of the franchise must include the transfer of all rights and obligations under that development agreement. This requirement extends not only to the franchisee but also to their Owners and Affiliates.

Specifically, the transferee must acquire all rights and obligations held by the franchisee, their Owners, and Affiliates under the original development agreement or any successor agreement. This also includes all franchise agreements for Restaurants that the franchisee, their Owners, or Affiliates executed under the development agreement, whether it's the original or a subsequent version.

This provision ensures that the development agreement remains intact and that the transferee assumes the responsibility for fulfilling the development obligations initially agreed upon. It prevents franchisees from transferring individual restaurant franchises without also transferring the broader development commitments, which could undermine Checkers's expansion plans and strategic objectives.