Following termination or expiration of the Checkersrallys franchise agreement, what evidence must a franchisee furnish to demonstrate compliance with post-termination obligations, and within what timeframe?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) immediately cease to use all Confidential Information and return to us all copies of Operations Manual and any other confidential materials which have been provided to you;
- (f) immediately discontinue any mode of communications on the Internet directly or indirectly relating to your Franchised Restaurant, including any Web sites or pages associated with your Franchised Restaurant, and immediately take all steps required by us to transfer any domain name associated with your Franchised Restaurant to us (such as executing a Registrant Name Change Agreement with the applicable Registrar). You irrevocably appoint the person who is then our president as your duly authorized agent and attorney-in-fact to execute all instruments and take all steps to transfer such domain names;
- (g) immediately cease to use all computer software licensed by us or any of Affiliates and comply with your obligations under any software license agreements; and
- (h) within thirty (30) days after the effective date of termination or expiration, furnish us evidence satisfactory to us of your compliance with the foregoing obligations.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must furnish evidence of compliance with certain obligations within 30 days after the termination or expiration of the franchise agreement. This evidence must be satisfactory to Checkersrallys. These obligations include ceasing the use of all confidential information and returning all copies of the Operations Manual and any other confidential materials provided by Checkersrallys.
Additionally, the franchisee must immediately discontinue any mode of communication on the Internet directly or indirectly relating to the franchised restaurant. This includes any websites or pages associated with the restaurant. The franchisee must also take all steps required by Checkersrallys to transfer any domain name associated with the franchised restaurant to them, including executing a Registrant Name Change Agreement with the applicable Registrar. The franchisee also irrevocably appoints Checkersrallys's president as their agent and attorney-in-fact to execute all instruments and take all steps to transfer such domain names.
Furthermore, the franchisee must immediately cease using all computer software licensed by Checkersrallys or its affiliates and comply with their obligations under any software license agreements. These post-termination obligations and the requirement to provide evidence of compliance are critical for a departing franchisee. Failure to comply can lead to legal repercussions and potential disputes with Checkersrallys.