What agreement must the transferee and its owners make regarding the existing agreement when transferring Checkersrallys Development Rights?

According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their development rights, the transferee and its owners must agree to be bound by all the provisions of the existing Development Agreement for the remainder of its term. This means the new party taking over the development rights steps into the shoes of the previous franchisee, assuming all responsibilities and obligations outlined in the original agreement.

This requirement ensures continuity and consistency in the Checkersrallys franchise system. By adhering to the original terms, the transferee maintains the standards and expectations set forth by Checkersrallys. This protects the brand's reputation and ensures that all franchisees operate under the same guidelines.

For a prospective Checkersrallys franchisee, this condition highlights the importance of thoroughly reviewing and understanding the Development Agreement before considering a transfer. It also emphasizes the need to carefully vet potential transferees to ensure they are capable and willing to comply with all the existing obligations. This provision aims to safeguard Checkersrallys's interests and maintain uniformity across its franchise network.