Who must execute the general release in a Checkersrallys franchise transfer?

According to Checkersrallys's 2025 Franchise Disclosure Document, in the event of a franchise transfer, the franchisee, their Owners, and Affiliates are required to execute a general release. This release must be in a form and substance that is satisfactory to Checkersrallys. The release covers any and all claims against Checkersrallys, its Affiliates, stockholders, officers, directors, employees, agents, successors, and assigns. This requirement may be limited or prohibited by applicable law.

This means that if a Checkersrallys franchisee decides to sell their franchise, they, along with their Owners and Affiliates, must sign a release that essentially waives any existing or future claims against Checkersrallys. This is a standard practice in franchising to protect the franchisor from potential legal issues arising from the previous franchisee's operation of the business. The specific terms and conditions of the release will be determined by Checkersrallys, ensuring it adequately protects their interests.

It is important for prospective Checkersrallys franchisees to understand this requirement before entering into a franchise agreement. They should carefully review the release document and consult with an attorney to fully understand the implications of signing such a release. Franchisees should also be aware that this release is a condition of the franchise transfer, and failure to comply could prevent the transfer from being approved by Checkersrallys.