What rights must the transferee acquire in a concurrent transaction when transferring Checkers Development Rights?

According to Checkers' 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their development rights, the transferee must acquire all of the transferor's rights, as well as the rights of their Owners and Affiliates, under all franchise agreements for Restaurants executed by them. This acquisition must occur in a concurrent transaction.

In simpler terms, this means that if a Checkers franchisee who holds development rights decides to sell those rights to someone else, the buyer must also take over all existing franchise agreements that the seller and their related parties have with Checkers. This prevents the original franchisee from retaining some restaurant locations while transferring the obligation to develop new ones. The concurrent nature of the transaction ensures a clean transfer of all associated rights and responsibilities.

This requirement protects Checkers by ensuring that development rights are transferred to parties fully committed to the brand and capable of managing existing restaurants while also developing new ones. It also avoids potential conflicts of interest that could arise if the original franchisee retained some locations while a new party was responsible for expanding the Checkers brand in the area. Franchisees looking to transfer development rights should be aware of this condition and ensure that potential transferees are prepared to take on all existing franchise agreements.