factual

What information is included in Exhibit A of the Checkers Development Agreement regarding restaurant development?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

The Development Agreement grants you the right to develop an agreed upon number of Checkers Restaurants or Rally's Restaurants within a geographical area described in Exhibit A to the Development Agreement (the "Development Area"). The size of the Development Area will depend on the number of Checkers Restaurants or Rally's Restaurants suitable for the Development Area, as mutually determined in light of factors such as population density and the residential or commercial character of the area. The number of Checkers Restaurants or Rally's Restaurants and the dates they are to be open and operating, including development schedules for such restaurants, will be set out in Exhibit A to the Development Agreement (the "Development Schedule").

You will not receive an exclusive territory in the Development Area. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. During the term of the Development Agreement, as long as you and your affiliates are in compliance with the agreement and all other agreements with us or any of our affiliates (including Franchise Agreements signed under the Development Agreement), we will: (a) grant to you, in accordance with Section 3 of the Development Agreement, at least that cumulative number of franchises for Checkers Restaurants or Rally's Restaurants set forth in Exhibit A to the Development Agreement, all of which are to be located within the Development Area (the locations of which we will approve in accordance with our then current criteria for selection of a Checkers Restaurant or Rally's Restaurant site); and (b) not operate (directly or through an affiliate), nor grant the right to operate, any Checkers Restaurants or Rally's Restaurants located within the Development Area, except for: (1) franchises granted pursuant to the Development Agreement; (2) Restaurants open (or under commitment to open) as of the date of the Development Agreement; (3) Checkers Restaurants, Rally's Restaurants or other restaurants using any part or all of the System and/or Marks at Non-Traditional Sites; and (4) restaurants that we purchase (or as to which we purchase the rights as franchisor) that are part of another franchise system or chain, regardless whether such restaurants are converted to operations as Checkers Restaurants or Rally's Restaurants using any of the

Source: Item 12 — TERRITORY (FDD pages 57–61)

What This Means (2025 FDD)

According to Checkers's 2025 Franchise Disclosure Document, Exhibit A of the Development Agreement outlines key details regarding the development of Checkers restaurants within a specific geographical area. This exhibit, also known as the "Development Schedule", specifies the number of Checkers restaurants a developer is expected to open and operate, along with the dates by which these restaurants should be open and operating. The Development Area's size is determined by factors such as population density and the area's residential or commercial nature.

For a prospective Checkers developer, Exhibit A is crucial as it sets the development timeline and obligations. Failing to adhere to the Development Schedule constitutes a material breach of the Development Agreement. However, Checkers's exclusive remedy for failing to meet the Development Schedule is termination of the Development Agreement.

It is important to note that Checkers developers do not receive an exclusive territory. They may face competition from other franchisees, company-owned outlets, or other distribution channels. Despite this, as long as the developer complies with the Development Agreement, Checkers will grant them at least the cumulative number of franchises outlined in Exhibit A, within the Development Area. Checkers also commits not to operate or grant the right to operate other Checkers restaurants within the Development Area, except for existing restaurants, non-traditional sites, or acquired restaurants.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.