In the event of death or permanent disability, how long does the personal representative have to transfer the interest in the Checkers Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon your death or permanent disability or an Owner of a controlling interest in Area Franchisee, the executor, administrator, or other personal representative of such person shall transfer his interest in this Agreement or his interest in Area Franchisee to a third party approved by us in accordance with all of the applicable provisions of Section 7 within a reasonable period of time, not to exceed 9 months from the date of death or permanent disability.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, in the event of the death or permanent disability of the franchisee or an owner with controlling interest, the executor, administrator, or other personal representative has a limited time frame to transfer the interest in the Checkers Agreement.
The personal representative must transfer the interest to a third party approved by Checkers. This transfer must occur within a reasonable period, specifically not exceeding 9 months from the date of death or permanent disability.
This requirement ensures that the Checkers franchise continues to be operated by a qualified and approved individual, maintaining the brand's standards and reputation. The stipulation for franchisor approval aligns with standard franchising practices, allowing Checkers to maintain control over who operates its franchises, even in unforeseen circumstances like death or disability.