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

According to Checkers' 2025 Franchise Disclosure Document, if a franchisee's agreement was executed under a development agreement, the transferee must acquire all rights of the franchisee, their owners, and affiliates under that development agreement (or any successor). This also includes all franchise agreements for restaurants that the franchisee, their owners, or affiliates executed under the development agreement (or any predecessor or successor).

In simpler terms, if a Checkers franchisee who initially signed a development agreement (an agreement to open multiple locations) decides to transfer their franchise, the person or entity taking over the franchise must also take over all the rights and obligations associated with the original development agreement. This ensures that the new franchisee is committed to the same multi-unit development plan as the original franchisee.

This requirement protects Checkers' interests by ensuring that development plans are not disrupted by franchise transfers. It also ensures that the transferee is fully aware of and prepared to fulfill the obligations of the development agreement, which may include opening additional locations within a specific timeframe. A prospective franchisee should carefully review the terms of the development agreement to understand the full scope of these obligations before agreeing to the transfer.