Under what conditions can Checkers terminate a franchise agreement with cause?

According to Checkers's 2025 Franchise Disclosure Document, Checkers can terminate a franchise agreement with cause under specific conditions, as detailed in Section 14 of the agreement. These causes fall into two categories: defaults that can be cured and defaults that cannot be cured.

For curable defaults, Checkers provides franchisees with a period to remedy the breach. Specifically, a franchisee has 24 hours to correct a health violation, 10 days to cure a failure to pay Checkers, and 30 days to address any other breaches of the Franchise Agreement. Failure to cure the default within the given timeframe allows Checkers to terminate the agreement.

Non-curable defaults, outlined in Sections 14.01 and 14.02, include more severe or repeated violations. These include events such as insolvency, failure to open or abandonment of the business, cancellation of the lease, misrepresentations, conviction of a felony, unauthorized transfer of the franchise, unauthorized disclosure of confidential information, understatement of the Franchised Restaurant's Net Sales three times or more during the term or by more than 5% on any one occasion, and repeated breaches of the Franchise Agreement. Because these defaults are considered severe, Checkers can terminate the agreement immediately without providing an opportunity to cure the default.