| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made | |---|---|---|---|---| | Restaurant Building Costs (See Note 2) | $2,630 - $149,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions | | Restaurant Equipment & Technology (See Note 2) | $25,000 - $329,538 | As incurred | On ordering | Suppliers | | Soft Costs (See Note 3) | $8,000 - $30,000 | Dependent upon bank financing | Dependent upon bank financing | Contractors, Suppliers, Lending Institutions | | Signage including | $4,000 - | As incurred | On ordering | Us or Other | | Menuboards | $30,000 | | | Supplier | | Inventory (See Note | $4,000 - | As incurred | When delivered | Suppliers | | 4) | $12,000 | | | | | Additional Funds - 3 Months (See Note 5) | $50,000 - $120,000 | As incurred | As incurred | Employees, suppliers, utilities, etc. | | TOTAL ESTIMATED INITIAL INVESTMENT (exclusive of real estate and related costs (see Note 2 and 6)) | $123,630 - $725,538 | | | | NOTE 1 See description of the initial franchise fee in Item 5 of this franchise disclosure document.

NOTE 2 Chart 1: Modular Design Drive-Thru Restaurant. The "Restaurant Building" line item reflects our estimate of the cost of constructing a modular drive-thru restaurant which is manufactured and shipped to the Premises, with an estimated size of approximately 1,008 square feet for the building on a site of approximately 19,080 to 30,000 square feet. The "Restaurant Building" estimate includes the cost of the building, building shipping and building assembly. This estimate also includes site development costs for on-site construction which vary considerably, depending on factors such as the condition of the premises when possession is delivered to you by the seller or landlord, site-specific requirements, and material and labor costs variations due to your region and specific location.

Chart 2: Conversion Restaurant. The "Restaurant Building" line item reflects our estimate of the cost of converting a freestanding drive-thru restaurant of another brand or other retail building to a Checkers Restaurant or Rally's Restaurant. The estimated size of the building is 1,008 to 3,000 square feet and estimated size of the lot is 19,080 to 30,000 square feet. This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as the condition of the premises when possession is delivered to you by the seller or landlord, sitespecific requirements, material and labor costs, and variations depending on your region and your specific location.

Chart 3: Site Built Restaurant. The "Restaurant Building" line item reflects our estimate of the cost of constructing a drive-thru restaurant of approximately 1,008 square feet for the building on a site of approximately 19,080 to 30,000 square feet. This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as the condition of the premises when possession is delivered to you by the seller or landlord, site-specific requirements, material and labor costs, and variations depending on your region and your specific location.

Chart 4: Endcap Restaurant. The "Restaurant Building" line item reflects our estimate of the cost of constructing an endcap restaurant in a strip-center. This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as the condition of the premises when possession is delivered to you by the seller or landlord, site-specific requirements, material and labor costs, and variations depending on your region and your specific location. The estimated size of the restaurant is 1,500 to 3,000 square feet.

Chart 5: In-Line Restaurants in High Density Markets. The "Restaurant Building" line item reflects our estimate of the cost of constructing a restaurant at an in-line location without any drive-thru in a high-density market. This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as the condition of the premises when possession is delivered to you by the seller or landlord, site-specific requirements, material and labor costs, and variations depending on your region and your specific location. The estimated size of the restaurant is 1,200 to 3,500 square feet.

Chart 6: Gas/Convenience, Non-Traditional, or Walmart Restaurant. The "Restaurant Building" line item reflects our estimate of the cost of constructing a restaurant at a Non-Traditional Site, Walmart, or a retail gas station or convenience store with a single drive thru This estimate includes site development costs using conventional construction methods, which may vary considerably depending on factors such as the condition of the premises when possession is delivered to you by the seller or landlord, site-specific requirements, material and labor costs, and variations depending on your

region and your specific location. The estimated size of the restaurant is 1,200 to 3,500 square feet.

The "Restaurant Equipment & Technology" line item reflects our estimate of the cost of equipment and technology, which includes a POS system, drive thru timers (if applicable), and associated hardware.

• NOTE 3 This estimate includes soft costs such as due diligence, surveys, fees for architects and engineers, permit, and impact fees, which vary by your region and specific location. If you construct an endcap restaurant in a strip-center, retail gas station or convenience store with a single drive-thru, we do not anticipate that you will incur many of these costs as the Premises of the restaurant will already be established.
• NOTE 4 This estimate is net of supplier discounts of approximately $4,000 on the initial order of food products and supplies.
• NOTE 5 This is an estimate, based on our experience of opening and operating Restaurants (including actual restaurant openings during the last 3 years), of your pre-opening expenses and working capital requirements for the first 3 months of operations. Pre-opening expenses are estimated to range between $10,000 and $40,000 and include such items as professional fees, organizational expenses, salaries during training, travel, living and miscellaneous expenses while attending training, utility deposits and salaries for a manager and some crew members during the 30-day period before opening. Working capital for the first 3 months are estimated to range between $30,000 and $60,000 and include general operating expenses, such as lease payments, inventory, payroll, payroll expenses, facility expenses, insurance, pest control, security, repairs and maintenance and complimentary sales and other costs. These figures are estimates and we cannot assure you that you will not have additional expenses in starting the Franchised Restaurant. Your actual cost will depend on factors such as your management skill, experience and business acumen; local economic conditions; the local market for the Franchised Restaurant; the prevailing wage rate; competition in the market place; and the sales level reached during the start-up phase. These amounts do not include any estimates for any debt service.
• NOTE 6 The chart provides an estimate of your initial investment for a Checkers Restaurant or Rally's Restaurant on a leased site. The total estimated initial investment does not include real estate and related costs. We are unable to estimate the cost of purchasing and developing a site for a Restaurant, as it will vary considerably depending on such factors as the location and size of the site and the local real estate market.

Except as otherwise noted, none of these payments are refundable. These payments are only estimates and your costs may be higher, depending on your particular circumstances. We do not offer any financing for your initial investment.

If you purchase an existing company-owned Checkers Restaurant or Rally's Restaurant, you may have to make a greater or smaller investment, depending on the

circumstances, than the estimated initial investment shown above. The price and terms of payment for that Checkers Restaurant or Rally's Restaurant will be established by mutual agreement. You also will pay a $10,000 asset transfer fee in addition to the initial franchise fee for that location.

ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Generally

To ensure that high and uniform standards of quality and service are maintained, you are required to operate your Franchised Restaurant in strict conformity with our methods, standards and specifications and you are required to purchase goods, services, supplies, fixtures, equipment and inventory only from suppliers we have approved. You are not required to purchase or lease anything from us or any of our affiliates; however, we and our affiliates can be approved suppliers for items. Currently, we are not an approved supplier for any items except that we may from time to time sell used modular restaurants and restaurant equipment to Checkers and Rally's franchisees. We estimate the initial cost of all of required purchases and leases of goods, services, supplies, fixtures, equipment and inventory to be in excess of 95% of your total initial investment (see Item 7). We estimate the ongoing cost of these required purchases and leases to be in excess of 95% of your total ongoing operating expenses.

We may formulate and modify, at our sole discretion, specifications and standards we impose on franchisees and suppliers. Specifications and standards are issued to franchisees through the Operations Manual (defined below) and to suppliers by written notice. The "Operations Manual" is our confidential operations manual, as we may amend at any time, which may consist of one or more manuals or communications, containing our mandatory and suggested standards, specifications and operating procedures relating to the development and operation of Restaurants and other information relating to your obligations as a franchisee and operator of a Restaurant. The term "Operations Manual" also includes all instructions or communications we or our representatives may transmit to you or a substantial number of franchisees, whether in writing or through other media, concerning aspects or modifications to the System, standards, specifications and operating procedures, including bulletins, emails, limited access intranet sites, videotapes, audio tapes, or any other electronic medium. We attempt to negotiate purchase arrangements with suppliers (including price terms) for the benefit of all Restaurants, including those owned by franchisees. We do not provide material benefits (e.g., renewal or additional franchises) to a franchisee based on his use of designated or approved suppliers.

There are no franchisee purchasing or distribution cooperatives.

None of our officers own an interest in any privately-held suppliers, or a material interest in any publicly-held suppliers, of the Checkers or Rally's franchise systems. From time to time, our officers may own non-material interests in publicly-held companies that may be suppliers (or have subsidiaries that may be suppliers) to Restaurants; however, we have an internal "Conflict of Interest Policy" that prohibits officers and employees from using our property, position, or information for improper and unusual personal gain.

Items We Supply or Derive Revenue From

We and our affiliates may receive revenues from required purchases and leases of products and services by franchisees. The revenues are collected by approved suppliers or distribution centers on behalf of the system and are paid to us. Our total revenues for the fiscal year which ended December 30, 2024 were $300,381,238 of which $6,189,551 or 2.1% were revenues from required purchases and leases of products and services by franchisees. Our total revenue from franchisee purchases includes $2,225,520 in gross revenue from subleases with franchisees. We generally collect rent as a pass through for landlords on the underlying lease but may earn a profit. We did not earn any profit from subleases during our 2024 fiscal year. Our intention is not to earn a profit, but instead to use all revenues collected from franchisee and company-owned restaurant purchases of products and services to offset expenses we incur in administering system-wide programs such as people, guest and operations programs, insurance procurement, promotional and price management tools, supply chain programs, brand protection (including quality assurance and food safety) programs and research and development. However, we may earn a profit from franchisees' required purchases and leases of products and services.

Our affiliate, CDSI, also earned $7,890,469.14 in gross revenue from required purchases and leases of products and services by franchisees during our 2024 fiscal year.

Other than CDSI, none of our affiliates derived any revenue or other material considerations from required franchisee purchases or leases during the fiscal year ended December 30, 2024.

Suppliers may pay us rebates or allowances based on purchases by Checkers and Rally's franchisees and by us for our company-owned Checkers Restaurants and Rally's Restaurants. The payments may vary from supplier to supplier, and in some cases, the basis for the payment varies over time with respect to the same supplier. Suppliers who exhibit at our conventions contribute to the cost of the conventions.

In the fiscal year ended December 30, 2024, one supplier provided allowances directly to Checkers Restaurants and Rally's Restaurants, their affiliates, as well as the NPF, based in large part on the amount of sales to all Checkers Restaurants and Rally's Restaurants. For each participating Checkers Restaurant and Rally's Restaurant (whether companyowned or franchised), the supplier paid a fixed dollar amount per gallon of beverage syrup directly to each participating restaurant, and paid a fixed dollar amount per gallon of beverage syrup to the NPF.

Site Selection

You must select a site for your Franchised Restaurant that conforms to our standard site selection criteria and that we accept or reject pursuant to our standard franchise site package (see Item 11).

Purchase and Lease of Premises

We have the right to approve the terms of any lease, sublease or purchase contract for the Premises of your Franchised Restaurant. Any lease or sublease for the Premises must contain certain provisions detailed in our required form of franchise addendum to lease agreement (the "Lease Addendum"), the current form of which we include as an exhibit attached to the Franchise Agreement.

If we agree to sublease the Premises to you, you are required to pay the rent under the sublease to the landlord of the Premises, along with the related occupancy costs, which include property taxes, insurance, maintenance and structural repairs. We derive revenue from this subleasing arrangement, as detailed in Item 6.

Development of the Premises

You are responsible for developing your Franchised Restaurant, for all expenses associated with it and for compliance with the requirements of any applicable federal, state or local law, code or regulation, including those concerning the Americans with Disabilities Act ("ADA") or similar rules governing public accommodations for persons with disabilities. You must exercise every reasonable effort to obtain all necessary governmental approvals for the development of the Franchised Restaurant in accordance with applicable laws. At your request, we will provide you with prototype plans, or other design materials, concerning build out for a Restaurant, for which we may require you to pay a fee. (Currently, none.) The plans are supplied as a draft only for your use in developing a final set of plans for construction of the Franchised Restaurant. You may modify those prototype plans only as required to ensure that the plans and all specifications comply with all applicable federal, state and local codes and regulations, ordinances, building codes and permit requirements and any lease requirements and restrictions. You may not make modifications to the dimensions or the exterior design of the building without our specific authorization. You must submit all modified plans and specifications to us for our approval before seeking municipal approval to develop the Premises. Our review and approval of your plans are not designed to assess compliance with federal, state or local laws and regulations, including the ADA, as compliance with such laws is your sole responsibility. At our request, you must submit all revised or "as built" plans and specifications. All development must be in accordance with the plans and specifications we have approved, and must comply with all applicable laws, ordinances and local rules and regulations. The architect and/or general contractor you use to design and construct the Franchised Restaurant must be approved by us in writing. Any architect, general contractor or other builders you use must be licensed and maintain architect's, builder's and/or contractors insurance (as applicable). Our approval of any architect, general contractor or other builders that you use to design or construct the Franchised Restaurant is not a representation or warranty of any kind, express or implied, of the architect's, general contractor's or other builder's qualifications or competence in designing or constructing the Franchised Restaurant. Our approval indicates only that we believe that the architect, general contractor or other builder meets our then acceptable

criteria. All prototype plans and other plans and specifications for the Franchised Restaurant will be our sole and exclusive property, and you may claim no interest in them.

Purchase or Lease of Equipment, Furniture, Fixtures and Signs

You must purchase or lease only those types, brands and models of fixtures, furniture, equipment (including modular buildings), signs and supplies that we approve for Restaurants as meeting our specifications and standards. You must purchase or lease approved types, brands, or models of fixtures, furniture, equipment, signs and supplies only from suppliers we approve. All fixtures, furniture, equipment, signs and supplies you purchase must be in "new" condition unless we permit otherwise in writing.

Suppliers, Products, Services, Beverages, Supplies and Materials

You will use in the development and operation of the Franchised Restaurant and/or offer for sale at the Franchised Restaurant only food products, beverages, ingredients, uniforms, packaging materials, menus, forms, labels, equipment, smallwares and other supplies and other products and services that conform to our specifications and quality standards and/or are purchased from suppliers, distributors and service providers (collectively, "supplier" or "suppliers") we approve (which may include us and/or any of our affiliates). We may modify the list of approved brands and/or suppliers. After notice of such modification, you may not reorder any brand or from any supplier that is no longer approved.

If you propose to use any brand or supplier that is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. We have the right to charge reasonable fees to cover our costs (currently, we charge only our out of pocket expenses). We will notify you of our decision within a reasonable period of time not to exceed 60 days. We may prescribe procedures for the submission of requests for approval and impose obligations on suppliers, which we may require to be incorporated in a written agreement. We may impose limits on the number of suppliers and/or brands for any of the foregoing items and set required, optional or test menu items. We will make available our then current supplier criteria to you, as necessary, upon request if we are asked to evaluate and approve a new supplier, item, or service for use with the System. We may revoke our approval of any supplier by notifying the supplier and you in writing.

Specifications, Standards and Procedures

Each aspect of the interior and exterior appearance, layout, decor, services, equipment and operation of your Franchised Restaurant is subject to our specifications and standards. You must comply with all mandatory specifications, standards and operating procedures (whether contained in the Operations Manual or any other written communication) relating to the appearance, function, cleanliness and operation (including days and hours of operation) of a Restaurant.

Advertising

You must submit to us for our prior approval, samples of all advertising and promotional materials not prepared or previously approved by us and that vary from our

standard advertising and promotional materials. You may not use any advertising or promotional materials that we have disapproved.

You may not promote, offer or sell any products or services relating to your Franchised Restaurant, nor use any of the Marks (defined in Item 13 below), through the Internet without our consent, which consent may be withheld for any reason or no reason. In connection with any such consent, we may establish such requirements as we deem appropriate, including (a) obtaining our prior written approval of any Internet domain name and home page addresses; (b) submission for our approval of all Web site pages, materials and content; (c) use of all hyperlinks and other links; (d) restrictions on use of any materials (including text, video clips, photographs, images and sound bites) in which any third party has any ownership interest; and (e) obtaining our prior written approval of any modifications.

Gift Card and Similar Programs

You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, and affinity cards for Restaurants and participate in, and comply with the requirements of, our gift card and other customer loyalty, affinity, and similar programs.

Delivery Program

If you are qualified and elect to participate in our optional Delivery Program, you must only offer the Delivered Products we authorize and use the DSPs that we appoint. You must also purchase a printer from a supplier that we approve, which will be used to operate the Delivery Program from the Franchised Restaurant.

Order Ahead Program

If you are qualified and elect to participate in our optional Order Ahead Program, you must only offer the Order Ahead Products we authorize and use the service providers that we appoint. Currently, we require that you use our preferred vendor, Olo, if you enter the Order Ahead Program.

Insurance

During the term of the Franchise Agreement, you must maintain the following categories of insurance coverage in force at your sole expense, all containing at least the following minimum amounts of liability coverage: (a) general liability ($1,000,000 per occurrence and $2,000,000 aggregate); (b) automobile ($1,000,000 combined single limit) for owned and hired, non-owned liability; (c) umbrella liability ($5,000,000 per occurrence and aggregate) with employer's liability, general liability, and automobile liability scheduled as underlying policies; (d) property covering the Franchised Restaurant and personal property in an amount 100% of the full replacement cost of the Franchised Restaurant and personal property, and business income coverage covering 12 months of actual loss sustained; (e) workers' compensation (as required by statute); (f) employer's liability ($1,000,000/$1,000,000/$1,000,000); (g) employment practices liability ($1,000,000 per occurrence and aggregate limit); (h) cyber insurance ($1,000,000 per occurrence and aggregate limit); and (i) any other insurance policies as we may determine from time to time.

All insurance policies must: (1) be issued by carriers we approve with an A.M. Best Rating of not less than A VII; (2) contain such types and minimum amounts of coverage,

exclusions and maximum deductibles as we prescribe from time to time; (3) name us and our affiliates as additional insured; (4) provide for 30 days' prior written notice to us of any material modification, cancellation or expiration of such policy; (5) provide a waiver of subrogation in favor of us and our affiliates; and (6) include such other provisions as we may require. The minimum amount of liability coverage we prescribe in no way limits your liability to those minimum amounts. We may periodically increase the amounts of coverage required under these insurance policies and/or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. These insurance policies must be primary to and without right of contribution from any other insurance policy purchased by us, our affiliates and our respective directors, officers, employees, shareholders, members, agents, successors and assigns (collectively, "indemnitees"); must not limit or reduce coverage for you if there is a claim by us or any one or more of the other indemnitees; and must extend to and provide indemnity for all of your indemnification obligations to us and the other indemnitees.

Accounting and Records

You must record all sales on electronic cash registers designated or approved by us. You may be required to use computer-based cash registers which are fully compatible with our computer system and which include an information interface capability to communicate electronically with our computer system. We may require you to obtain equipment, software and/or services to facilitate communications between your computer-based cash registers and our computer system. We have the right to use the data we collect for any purpose, except that we shall not provide financial data to third parties, outside of our system or network, in such a form that readily identifies the Franchised Restaurant, unless we are required to do so by law, regulation, or order. If we require you to use proprietary software, you agree to execute and comply with such software license agreements as we deem necessary to protect our interests, and you agree to pay such license, training, and maintenance fee as we deem reasonably appropriate.

ITEM 9 FRANCHISEE'S OBLIGATIONS

This table lists your principal obligations under the Franchise Agreement and other agreements. It will help you find more detailed information about your obligations in these agreements and in other Items of this Franchise Disclosure Document.

| OBLIGATION | SECTION IN AGREEMENT | DISCLOSURE DOCUMENT ITEM

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 44–46)