Under the Checkers Development Rights Agreement, what restaurants are excluded from the exclusive development area?

According to Checkers' 2025 Franchise Disclosure Document, while the Development Rights Agreement grants certain exclusive rights within a defined Development Area, there are several exceptions. These exceptions outline specific types of restaurants or locations that Checkers can still operate or franchise within the Development Area, even with the agreement in place.

Specifically, the following are excluded: franchises granted under the Development Rights Agreement itself, existing Checkers or Rally's restaurants (or those under commitment to open) as of the agreement's effective date, and restaurants in locations that generate their own customer traffic independent of the surrounding area. These independent traffic locations include military bases, transportation venues like airports and train stations, sports and entertainment venues such as stadiums and concert halls, major industrial or office complexes, hotels, educational facilities including school and university campuses, casinos, hospitals and related facilities, governmental institutions, amusement and recreational facilities like theme parks and zoos, grocery and department stores, mobile food trucks, co-branding locations, and mobile units at special events.

Additionally, Checkers retains the right to purchase existing restaurants (or the rights to them) that are part of another franchise system or chain, regardless of whether they are converted to Checkers or Rally's restaurants or continue to operate under their original branding. This reservation of rights allows Checkers to pursue diverse business opportunities and strategies within the Development Area, even while the franchisee is developing their own locations. This could impact the franchisee if Checkers opens additional restaurants near the franchisee's locations.