Is the Checkersrallys agreement binding on the heirs of the parties involved?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
18.09 Successors and Assigns.This Agreement is binding on the parties hereto and their respective executors, administrators, heirs, assigns and successors in interest. This Agreement is fully transferable by us, whether by operation of law or otherwise, and shall inure to the benefit of any transferee or other legal successor to our interests herein.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the franchise agreement is binding on the heirs of both parties involved. Specifically, the agreement extends to the executors, administrators, and heirs of both the franchisor and the franchisee. This means that the obligations and benefits outlined in the franchise agreement will continue to apply even in the event of the death of either party, ensuring continuity and legal enforceability.
For a prospective Checkersrallys franchisee, this clause has significant implications. If the franchisee were to pass away during the term of the agreement, their estate, including their heirs, would be responsible for upholding the terms of the franchise agreement. This could involve continuing to operate the franchise, selling it to a qualified buyer, or fulfilling any other obligations specified in the agreement.
Conversely, the same applies to Checkersrallys. Should the company undergo changes in ownership or structure, the agreement remains binding on its successors. This provides a level of assurance to the franchisee that the terms of the agreement will be honored regardless of changes within the Checkersrallys organization. This clause ensures that the agreement remains enforceable and protects the interests of both parties throughout its duration, even in unforeseen circumstances such as death or business succession.