Under what condition can the requirement for individual ownership of a Checkers franchise be waived?

Based on the 2025 Checkers Franchise Disclosure Document, an individual is not prevented from owning less than five percent (5%) of a Competitive Business for investment purposes. This is allowed only if the Competitive Business's stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange, and neither the individual nor the franchisee controls the company in question.

This exception to the competitive business restrictions allows franchisees to make minor investments in publicly traded competitor companies without violating the franchise agreement. However, this exception is limited to ownership of less than 5% and requires that the competitor's stock be publicly traded on a U.S. stock exchange. The franchisee also cannot control the competitor company.

It is important for prospective Checkers franchisees to understand these restrictions and ensure any investments they hold comply with these terms. Failure to comply with these restrictions could be a breach of the franchise agreement. Franchisees should seek legal counsel to ensure they fully understand these limitations and how they apply to their specific circumstances.