For Checkers, what does each Owner represent and warrant regarding their ownership interest in Area Franchisee?

According to Checkers' 2025 Franchise Disclosure Document, each Owner of an Area Franchisee must provide a complete and accurate list including their full name, mailing address, and a full description of the nature and extent of their ownership interest in the Area Franchisee. Furthermore, each Owner, with respect to their ownership interest, represents and warrants that they are the sole and exclusive legal and beneficial owner of their interest. This ownership must be free and clear of all liens, restrictions, agreements, and encumbrances, except as otherwise permitted by the Area Franchise Agreement.

This requirement ensures that Checkers knows exactly who owns and controls each Area Franchisee. This transparency helps Checkers manage its franchise network and ensures that all Owners are committed to the terms of the franchise agreement. The representation that the ownership interest is free and clear of encumbrances protects Checkers from potential disputes or claims against the Area Franchisee that could arise from undisclosed liens or agreements.

For a prospective Checkers franchisee, this means that if you are part of a business entity seeking an Area Franchise, you and each of your co-owners must be prepared to disclose full details of your ownership stake. You must also ensure that your ownership is legally sound and unencumbered. Failure to do so could be a breach of the Area Franchise Agreement and could potentially void the agreement. This requirement is fairly standard in franchising, as franchisors need to know and trust who they are partnering with.