Which sections do not apply to transfers of a Checkers franchise among current Owners?

According to Checkers's 2025 Franchise Disclosure Document, certain sections regarding franchise transfers do not apply when the transfer occurs between current owners. Specifically, Section 13.06, which likely pertains to Checkers's right of first refusal or other conditions, is waived in such internal transfers. Additionally, specific subsections of Section 13.02, namely (a), (c), (f), and (h), are also not applicable. These subsections likely cover conditions such as the franchisee completing development, the transferee meeting certain qualifications, the transferee agreeing to a new franchise agreement, and the transferee agreeing to upgrade or remodel the restaurant.

This exemption simplifies the transfer process among existing Checkers owners, potentially reducing the administrative burden and costs associated with such transactions. It suggests that Checkers places a higher level of trust and flexibility in transfers among individuals already vetted and invested in the franchise system. This can be a significant benefit for partnerships or groups of owners who may need to adjust ownership percentages or reallocate responsibilities without facing the full scrutiny and requirements of an external transfer.

However, it is important to note that other transfer requirements outlined in Section 13 may still apply, and the transfer must still be conducted in accordance with the overall provisions of the franchise agreement. Prospective franchisees involved in such internal transfers should carefully review the remaining applicable sections to ensure full compliance and avoid any potential breaches of contract. It would be prudent to consult with a legal professional to fully understand the implications of these special transfer conditions.