In the event of the death or disability of a Checkers developer, within what timeframe must the franchise be assigned by the estate to an approved buyer?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY | |
|---|---|---|---|
| o. | Franchisor's option to purchase developer's development rights | Not applicable | Not applicable |
| p. | Death or disability of developer | Section 7.05 | Franchise must be assigned by estate to approved buyer within nine months. |
| q. | Non-competition covenants during the term of the agreement | Section 6.02 | No involvement in any competing business regardless of its location. |
| r. | Non-competition covenants after the agreement is terminated or expires | Section 9.02 | No competing business for 2 years within your Development Area or within 3 miles of any other Checkers Restaurant or Rally's Restaurant. |
| s. | Modification of the agreement | Section 10.10 | No modifications except by written agreement signed by both parties. |
| t. | Integration/merger clause | Section 10.11 | Only terms of Development Agreement are binding (subject to state law); any representations or promises outside the disclosure document and development agreement may not be enforceable. However, nothing in the Development Agreement or any related agreement is intended to disclaim our representations made in this Disclosure Document. |
| u. | Dispute resolution by negotiation, mediation & arbitration | Section 10.06 | All claims, disputes and controversies shall be arbitrated on demand by either party. |
| v. | Choice of forum | Section 10.05 | If dispute is not arbitrated, then Florida State and Federal courts (subject to state law, see Exhibits I and J). |
| w. | Choice of law | Section 10.07 | Subject to state law, Florida law applies generally, except for applicable franchise laws of other states (see Exhibits I and J). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 66–71)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, in the event of the death or disability of a Checkers developer, the franchise must be assigned by the estate to an approved buyer within nine months. This requirement is detailed in Section 7.05 of the franchise agreement.
This stipulation ensures that the Checkers franchise continues to operate under approved management even in unforeseen circumstances. The nine-month timeframe provides the estate with a reasonable period to find a qualified buyer and complete the necessary transfer arrangements. The buyer must, of course, be approved by Checkers, ensuring they meet the brand's standards and qualifications.
For a prospective Checkers franchisee, this clause highlights the importance of succession planning. While no one anticipates death or disability, having a plan in place can ensure a smooth transition and protect the value of the franchise. It also underscores the need to maintain open communication with Checkers regarding potential successors or transfer options. This requirement is fairly standard in the franchise industry, as franchisors want to ensure brand consistency and operational effectiveness are maintained even when ownership changes.