Does Checkers' approval of a transfer of Development Rights waive Checkers' right to demand the transferee's exact compliance with the Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Our approval of a transfer of the Development Rights does not constitute: (a) a representation as to the fairness of the terms of any agreement or arrangement between you or your Owners and the transferee or as to the prospects of success by the transferee; or (b) a release of you and your Owners, a waiver of any claims against you or your Owners or a waiver of our right to demand the transferee's exact compliance with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers' approval of a transfer of Development Rights does not waive their right to demand the transferee's exact compliance with the Development Agreement.
The FDD states that Checkers' approval of a transfer does not represent the fairness of the agreement terms between the franchisee and transferee, nor does it act as a release of the franchisee or a waiver of any claims against them. Most importantly, Checkers retains the right to demand exact compliance with the Development Agreement from the transferee, regardless of the approval of the transfer.
This means that even after approving a transfer, Checkers can still enforce all terms of the original agreement against the new franchisee. A prospective Checkers franchisee should understand that transferring the Development Rights does not absolve them of responsibilities or protect the transferee from needing to adhere to the original agreement's conditions. This ensures the consistency and standards of the Checkers franchise system are maintained even when Development Rights change hands.