When transferring a Checkers franchise, what release must the franchisee and their Owners and Affiliates execute?

According to Checkers's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee, their Owners, and Affiliates must execute a general release. This release must be in a form and substance that is satisfactory to Checkers. The release covers any and all claims against Checkers, its Affiliates, stockholders, officers, directors, employees, agents, successors, and assigns, except to the extent limited or prohibited by applicable law.

In simpler terms, this means that when a franchisee sells their Checkers restaurant, they (along with anyone who owns a part of the franchise and their related entities) must sign a document releasing Checkers from any potential legal claims they might have. This is a standard practice in franchising to protect the franchisor from future liabilities related to the transferred franchise.

This requirement is a significant condition for Checkers's approval of the franchise transfer. It ensures that Checkers is protected from any past issues or disputes that the franchisee or their affiliates might try to bring up after the transfer is complete. The franchisee should carefully review the release document with legal counsel to understand the full scope of the claims they are waiving.