In the event of death or disability, to whom must the Checkersrallys franchise interest be transferred?

According to Checkersrallys's 2025 Franchise Disclosure Document, in the event of the franchisee's death or permanent disability, or that of an owner with a controlling interest in an Area Franchisee, the responsibility falls to the executor, administrator, or other personal representative of the deceased or disabled individual. This representative is required to transfer the interest in the Franchise Agreement or the interest in the Area Franchisee to a third party.

However, this transfer is not unconditional. Checkersrallys must approve the third party in accordance with the provisions outlined in Section 7 of the agreement. The transfer must occur within a reasonable timeframe, specifically within nine months from the date of death or permanent disability.

This stipulation ensures that Checkersrallys maintains control over who operates its franchises, even in unforeseen circumstances. For a prospective franchisee, this means that their heirs or representatives cannot automatically take over the franchise; instead, they must find a buyer acceptable to Checkersrallys within a limited time frame. This could create urgency and potential complications during an already difficult time.