Is Checkersrallys allowed to assign its right of first refusal to a third party?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the unrestricted right to assign this right of first refusal to a third party, who then will have the rights and obligations described in this Section 13.06.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys has the unrestricted right to assign its right of first refusal to a third party. This means that if a franchisee decides to sell their franchise, Checkersrallys has the first option to purchase it themselves. However, Checkersrallys can also transfer this right to another party, allowing that third party to step in and purchase the franchise instead.
This assignment does not require the franchisee's consent. The third party assignee then assumes the same rights and obligations that Checkersrallys originally held regarding the right of first refusal. This includes the right to investigate the business and financial aspects of the franchise to make an informed decision about purchasing it.
For a prospective franchisee, this clause means that if they decide to sell their Checkersrallys franchise, they might not be dealing directly with Checkersrallys during the sale. Instead, they could be negotiating with an entirely different entity that Checkersrallys has chosen to assign its right of first refusal to. This could potentially change the dynamics of the sale and introduce new considerations for the franchisee.