What additional documents or actions might Checkersrallys reasonably require of me, my Owners, and Affiliates to protect their rights during a franchise transfer?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
y and all claims against us and our Affiliates, stockholders, officers, directors, employees, agents, successors and assigns;
- (j) we must not have disapproved the material terms and conditions of such transfer (including the price and terms of payment) on the basis that they are
so burdensome as to be likely, in our judgment, to adversely affect the transferee's operation of the Franchised Restaurant or its compliance with its franchise agreements and any development agreements;
- (k) if you (or any of your Owners or Affiliates) finance any part of the sale price of the transferred interest, you and/or your Owners or Affiliates must agree that all obligations of the transferee, and security interests reserved by any of them in the assets of the Franchised Restaurant, will be subordinate to the transferee's obligations to pay all amounts due us and our Affiliates and to otherwise comply with this Agreement or the new franchise agreement executed by the transferee;
- (l) you (and your Immediate Family) will not, for two (2) years beginning on the transfer's effective date, engage in any of the activities proscribed in Section 16.03 below;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, during a franchise transfer, Checkersrallys can require you, your Owners, and Affiliates to execute other documents and perform other actions that Checkersrallys may reasonably require to protect their rights under the Franchise Agreement and any development agreement.
Additionally, if you or your Owners or Affiliates finance any part of the sale price of the transferred interest, you and/or your Owners or Affiliates must agree that all obligations of the transferee, and security interests reserved by any of them in the assets of the Franchised Restaurant, will be subordinate to the transferee's obligations to pay all amounts due Checkersrallys and its Affiliates and to otherwise comply with the agreement or the new franchise agreement executed by the transferee.
Furthermore, you and your Immediate Family will not, for two years beginning on the transfer's effective date, engage in any of the activities proscribed in Section 16.03. You and your Owners and Affiliates must, except to the extent limited or prohibited by applicable law, execute a general release, in form and substance satisfactory to Checkersrallys, of any and all claims against them and their Affiliates, stockholders, officers, directors, employees, agents, successors, and assigns.