What is the condition regarding the material terms of the transfer that Checkersrallys must not disapprove?

According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys must not disapprove the material terms and conditions of a franchise transfer if those terms are not so burdensome that they would likely adversely affect the transferee's operation of the franchised restaurant or their compliance with the franchise agreements and any development agreements. This condition applies to the price and terms of payment associated with the transfer.

For a prospective franchisee, this means that Checkersrallys retains the right to assess the financial viability of a proposed transfer. Checkersrallys can block a transfer if the terms are structured in a way that places an undue burden on the buyer, potentially jeopardizing the restaurant's future success or compliance with franchise obligations. This protects the Checkersrallys system by ensuring that new franchisees are set up for success.

This provision ensures that Checkersrallys has some control over who becomes a franchisee and under what financial conditions. It prevents existing franchisees from selling to individuals or entities under terms that could be detrimental to the brand. Prospective franchisees should understand that while they have the right to transfer their franchise, Checkersrallys has the right to ensure the transfer is reasonable and won't harm the system.