What happens to a Checkers franchise agreement upon the death or disability of the franchisee?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.05 Death or Disability.
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's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of the franchisee or an owner with a controlling interest in an Area Franchisee, their representative (executor, administrator, etc.) is required to transfer the interest in the Franchise Agreement or the Area Franchisee to a third party. This transfer must be approved by Checkers, adhering to the provisions outlined in Section 7 of the agreement.
The transfer must occur within a reasonable timeframe, specifically not exceeding nine months from the date of death or permanent disability. This provision ensures that the Checkers franchise continues to operate under new, approved management, maintaining the brand's standards and operational consistency.
This requirement protects Checkers's interests by ensuring that franchise operations are not disrupted indefinitely due to the franchisee's incapacity or death. It also provides a structured process for the deceased or disabled franchisee's estate to realize the value of the franchise by transferring it to a qualified and approved successor. Prospective franchisees should carefully review Section 7 of the franchise agreement to fully understand the transfer requirements and approval processes.