Does Checkersrallys' approval of a transfer of Development Rights release the franchisee and their Owners from claims against them?

According to Checkersrallys' 2025 Franchise Disclosure Document, the approval of a transfer of Development Rights by Checkersrallys does not automatically release the franchisee and their owners from claims against them. Instead, Checkersrallys requires, as a condition of approving the transfer, that the franchisee and their owners execute a general release of all claims against Checkersrallys.

Specifically, Checkersrallys requires that the franchisee and their 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 Checkersrallys, its affiliates, stockholders, officers, directors, employees, agents, successors, and assigns. This means that as part of the transfer process, franchisees will likely need to sign a document releasing Checkersrallys from any potential legal claims they might have.

However, this requirement may be limited or prohibited by applicable law, and the franchisee should seek legal counsel to understand the full implications of signing such a release. For example, the addendum to the Checkers Drive-In Restaurants, Inc. Franchise Disclosure Document for the State of Maryland states that any general releases signed will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. This highlights the importance of understanding state-specific regulations regarding franchise agreements and releases.