What release must the transferor execute when transferring Checkers Development Rights?

According to Checkers's 2025 Franchise Disclosure Document, when transferring Development Rights, the transferor, along with their Owners and Affiliates, must execute a general release. This release must be in a form and substance satisfactory to Checkers. The release covers any and all claims against Checkers, its Affiliates, stockholders, officers, directors, employees, agents, successors, and assigns.

In practical terms, this means that if a Checkers franchisee decides to sell their Development Rights, they must sign a document that prevents them from suing Checkers for any reason related to their franchise agreement or relationship with the company. This includes any past, present, or future claims. This requirement protects Checkers from potential legal action by the outgoing franchisee.

This condition is a standard practice in franchising, as it ensures a clean break between the franchisor and the franchisee. However, franchisees should carefully review the release with legal counsel to understand the full scope of what they are giving up. The FDD also notes an exception: the release may not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law, and lawsuits may be commenced in Maryland for claims arising under that law, subject to arbitration obligations.