Under what conditions can Checkers terminate the Development Agreement with cause?

According to Checkers's 2025 Franchise Disclosure Document, Checkers can terminate the Development Agreement with cause under specific conditions, as detailed in Section 8 of the agreement. These causes are categorized into curable and non-curable defaults.

For curable defaults, the developer typically has 30 days to correct the breach of the Development Agreement, as outlined in Section 8.02. However, non-curable defaults, as described in Sections 8.01 and 8.02, include more severe situations such as insolvency, failure to meet the development schedule, unauthorized transfer of the agreement, misrepresentations made to Checkers, conviction of a felony, unauthorized disclosure of confidential information, any default by the developer under a franchise agreement, or adverse franchise legislation.

It's important to note that if Checkers terminates the Development Agreement for cause, they may also terminate any existing franchise agreements the developer has with them. This highlights the interconnectedness of the agreements and the potential consequences of failing to meet the obligations outlined in the Development Agreement. Prospective franchisees should carefully review Section 8 of the Development Agreement to fully understand the circumstances that could lead to termination and the potential ramifications.