In a Checkersrallys franchise transfer, what kind of release must the franchisee and their Owners/Affiliates execute?

According to Checkersrallys's 2025 Franchise Disclosure Document, during a franchise transfer, the franchisee, along with their Owners and Affiliates, must execute a general release. This release must be in a form and substance that is satisfactory to Checkersrallys.

This general release serves to protect Checkersrallys from any potential claims that the franchisee, Owners, or Affiliates might have against them. It typically covers any and all claims against Checkersrallys and its Affiliates, stockholders, officers, directors, employees, agents, successors, and assigns. The release is a standard requirement in franchise transfer agreements to ensure a clean break between the transferring franchisee and the franchisor.

However, the FDD states that the execution of this release is subject to applicable law, meaning that if any law limits or prohibits such a release, those legal restrictions would take precedence. Prospective franchisees should consult with a legal professional to fully understand the implications of signing a general release and to ensure that their rights are protected during the transfer process.