factual

When renewing or transferring a Checkers franchise, what document must a franchisee sign?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

You must sign a general release if you renew or transfer your franchise.

California Corporations Code § 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§ 31000 through 31516).

Business and Professions Code § 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§ 20000 through 20043).

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to the 2025 Checkers Franchise Disclosure Document, franchisees in California must sign a general release when renewing or transferring their franchise. This requirement is highlighted in the addendum for the state of California. A general release is a legal document where the franchisee waives certain rights or claims against the franchisor.

However, the FDD also notes some important limitations and protections for franchisees, particularly in California. Specifically, California Corporations Code § 31512 voids any waiver of rights under the Franchise Investment Law (California Corporations Code §§ 31000 through 31516), and Business and Professions Code § 20010 voids any waiver of rights under the Franchise Relations Act (Business and Professions Code §§ 20000 through 20043). This means that while a franchisee must sign a general release, certain rights are legally protected and cannot be waived.

Prospective franchisees should carefully review the general release and understand what rights they are waiving. Given the legal complexities and the interplay between the general release and California law, it is advisable to consult with an attorney to fully understand the implications before signing any documents related to renewal or transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.