Is a Checkersrallys manager-level employee required to own equity in the franchise?

According to Checkersrallys's 2025 Franchise Disclosure Document, a manager-level employee is not required to own equity in the franchise. However, if the franchisee is a business entity such as a corporation or LLC, they must designate an Operating Partner who owns at least 10% of the equity and voting rights. This Operating Partner must also have the authority to make operational decisions and complete the Checkersrallys training program.

The FDD clarifies that while the Operating Partner must sign a Nondisclosure and Non-Competition Agreement, manager-level employees are not required to sign such an agreement. This distinction highlights that the equity ownership requirement applies specifically to the Operating Partner role, not to general managers or other employees.

This policy provides flexibility for Checkersrallys franchisees in structuring their business and managing their workforce. Franchisees can hire qualified managers without having to offer them equity in the company, which may simplify hiring and compensation arrangements. However, franchisees who choose to operate through a business entity must ensure that their designated Operating Partner meets the equity ownership and training requirements set forth by Checkersrallys.