What happens if a Checkers franchisee transfers the franchise without approval?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.01 Franchisor's Approval. The rights and duties created by this Agreement are personal to you or, if you are a business corporation, partnership, limited liability company or other legal entity, your Owners. Accordingly, neither you nor any of your Owners may transfer the Franchise without our approval and without complying with all of the provisions of Section 13. Any transfer without such approval or compliance constitutes a breach of this Agreement and is void and of no force or effect.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the rights and duties within the franchise agreement are personal to the franchisee or their owners. Therefore, neither the franchisee nor their owners can transfer the franchise without Checkers' approval and compliance with all provisions outlined in Section 13 of the agreement.
If a Checkers franchisee attempts to transfer the franchise without obtaining prior approval from Checkers or without adhering to the conditions specified in the franchise agreement, such a transfer is considered a breach of the agreement.
Consequently, any transfer of the franchise without the necessary approval or compliance is deemed void and has no legal effect. This means Checkers does not recognize the transfer, and the original franchisee remains responsible for fulfilling the obligations under the franchise agreement.