Under what conditions might a Checkers transferee be required to execute a new franchise agreement?

According to Checkers' 2025 Franchise Disclosure Document, a transferee may be required to execute the then-current standard form of the franchise agreement. This occurs when Checkers exercises its option to have the transferee be bound by all the provisions of the existing agreement for the remainder of its term, or, at Checkers' option, execute the current standard form. This new agreement would be the one used in the state where the franchised restaurant is located.

The new franchise agreement that a Checkers transferee might be required to sign may differ significantly from the original agreement. The 2025 FDD states that the new agreement could provide for different royalties, advertising contributions and expenditures, duration, and other rights and obligations than those in the original agreement. This means a transferee could face altered financial obligations, operational requirements, and term lengths compared to what the original franchisee agreed to.

This condition has significant implications for potential Checkers transferees. They must be prepared to accept potentially less favorable terms than those in the existing franchise agreement. It is critical for transferees to carefully review the then-current standard form of the franchise agreement before completing the transfer to fully understand the obligations and financial implications. They should also seek legal counsel to evaluate the differences between the original agreement and the new agreement to make an informed decision.