see successor franchise fee under Item 6).

In addition, should you qualify (as we solely determine) for any incentive programs or other sales promotions we are then offering in connection with sales of new franchises, or accelerated openings of franchises not yet opened (as the case may be), then your initial franchise fee or other applicable amounts due under the Franchise Agreement may be reduced according to conditions of that promotional offer (including signing an addendum to the

Franchise Agreement, as we may then require). We describe certain promotional offers currently in effect on the issuance date of this Franchise Disclosure Document below in this Item 5.

The initial franchise fee is fully earned by us on the effective date of the franchise agreement and is non-refundable, except that we may provide you a refund of 50% of the initial franchise fee if: (a) you (i) are unable to obtain a site acceptable to us within the Designated Area for the Franchised Restaurant within 180 days after the effective date of the franchise agreement, or (ii) despite having expended good faith best efforts (as we determine in our sole judgment), have not obtained all necessary permits, licenses, or other regulatory or municipal approvals to be able to open the Franchised Restaurant according to applicable law within 60 days after you sign the proposed lease, sublease, or purchase agreement for the location of the Franchised Restaurant; and (b) you and your owners execute general releases, in form and substance satisfactory to us, of any and all claims against us, and our affiliates, officers, directors, employees, agents, successors and assigns.

If you fail to pay the initial franchise fee before you open the Franchised Restaurant, then the amount of the initial franchise fee will increase by $500 per day on and after the opening date until we receive the full amount of the initial franchise fee, including all cumulative daily increases accruing since the opening date. These increases compensate us for our expenses, including the administrative and collection efforts with respect to the fee, and are not interest charges, time-price differentials or penalties for an overdue payment.

Asset Transfer Fee (on sale of company-owned Restaurant)

If your Franchise Agreement is for an existing Checkers Restaurant or Rally's Restaurant you are buying from us or our affiliate, then you must pay us a $10,000 asset transfer fee in addition to the initial franchise fee, payable on or before you close on the purchase of the Franchised Restaurant's assets. We may also impose the daily incremental late charge of $500 per day, as we describe above for a past-due initial franchise fee, if you do not pay the asset transfer fee before closing. This fee is full earned by us as of the effective date of the Franchise Agreement.

Initial Advertising and Promotional Program Deposit

If your Franchise Agreement is for a new Checkers Restaurant or Rally's Restaurant, you must pay a $15,000 advertising deposit (the "Initial Advertising Deposit") to our affiliate, NPF Inc., who administers the National Production Fund (described in Item 11). The Initial Advertising Deposit is due at the earlier of when you commence construction at the Premises for the Franchised Restaurant or 10 weeks from the anticipated opening date of the Franchised Restaurant. This amount is used to conduct, through the National Production Fund (and if applicable, any local advertising cooperative) an initial advertising and promotional program at the Franchised Restaurant as we deem appropriate. When the initial advertising and promotional program is complete, we will (after deducting for incurred costs and expenses) deposit any remaining amount from the initial advertising deposit to the National Production Fund.

During our 2024 fiscal year, franchisees that signed franchise agreements during the year paid pre-opening fees as we describe above ranging from $0 to $45,000 per Restaurant (inclusive of the initial franchise fee, asset transfer fees and the Initial Advertising Deposit).

10 Checkers/Rally's 2025 FDD

Subleases

Security Deposit

If we agree to sublease the Premises of your Franchised Restaurant to you, we may require you to pay us a refundable security deposit before you open or begin to operate the Franchised Restaurant. The amount of the security deposit, if any, will depend on the amount of the security deposit paid to the landlord of the Premises. During our 2024 fiscal year, we did not receive any security deposits from franchisees.

Sublease Administrative Fee

If your Franchise Agreement is for an existing Checkers Restaurant or Rally's Restaurant you are buying from us or our affiliate, and we agree to sublease the Premises of your Franchised Restaurant to you and remain on the master lease, then we may charge you a sublease administrative fee of up to 10% of the rent that remains due under the thencurrent lease term in consideration of our remaining a guarantor on the lease.

Sales Incentives and Promotions that may impact Pre-Opening Amounts Due

We currently offer a number of incentive programs that may reduce the amounts of pre-opening fees we describe above. Typically, these programs are not mutually exclusive, meaning that we may allow you to take advantage of multiple benefits across more than one promotion if your acquisition of a new Franchised Restaurant meets our criteria to receive a fee or other payment reduction under each offer.

2025 Growth Incentive

You will qualify for a 50% reduced initial franchise fee for your third and subsequent Restaurants if you meet the following criteria: (i) by December 31, 2025, you sign franchise agreements for and, within 18 months of signing the applicable franchise agreement you open to the general public, 3 or more Restaurants that comply with the then-current reimaging requirements; and (ii) you, your owners, or your and their affiliates are Restaurant Net Positive (defined below).

Source: Item 5 — INITIAL FEES (FDD pages 17–21)