Does Checkersrallys' approval of a franchise transfer release me and my Owners from claims or waive their right to demand the transferee's compliance with the agreement?

According to Checkersrallys's 2025 Franchise Disclosure Document, the approval of a franchise transfer does not release the franchisee and their owners from claims, nor does it waive Checkersrallys's right to demand the transferee's compliance with the franchise agreement. This means that even after a transfer is approved, the original franchisee and their owners may still be liable for any existing claims or breaches of the agreement.

This provision protects Checkersrallys by ensuring that the original franchisee remains responsible for their actions and obligations, even after transferring the franchise to someone else. It also allows Checkersrallys to enforce the terms of the franchise agreement with the new franchisee, ensuring consistent standards and practices across the franchise system.

For a prospective franchisee, this highlights the importance of fulfilling all obligations and resolving any outstanding issues before transferring the franchise. Failure to do so could result in continued liability even after the transfer is complete. It also underscores the need to carefully vet potential transferees, as their ability to comply with the franchise agreement will reflect on the original franchisee.