For the service-vesting RSUs granted by Checkers, what portion vests on the grant date?

According to Checkers' 2025 Franchise Disclosure Document, the company utilizes restricted stock units (RSUs) as part of its compensation plan. These RSUs are divided into service-based and performance-based categories, with two-thirds being service-based and one-third being performance-based. For the service-vesting RSUs, one-sixth of these units vest on the grant date.

This means that a portion of the service-based RSUs becomes immediately accessible to the recipient upon the initial grant. The remaining service-vesting RSUs vest according to a schedule: one-sixth vests on December 1, 2021, and the remaining four-sixths vest in equal installments on each of the first four anniversaries of December 1, 2021.

Additionally, 100% of the service-based vesting RSUs and performance-based RSUs vest upon a change of control, provided the recipient remains employed through that date. This vesting schedule and the conditions attached to it are important for understanding the long-term incentives and potential benefits associated with these equity awards.

For a prospective franchisee, this information is relevant only if they are considering a management or board of directors position with Checkers, as the RSUs are granted under the Amended and Restated 2017 Management Incentive Plan. Franchisees should focus more on the standard financial performance metrics and franchise terms outlined elsewhere in the FDD.