In a Checkersrallys franchise transfer, what kind of release must the transferor execute?

According to Checkersrallys's 2025 Franchise Disclosure Document, in the event of a franchise transfer, the transferor, 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 and all claims that the transferor might have against them. This includes claims from the franchisee, their owners, and their affiliates. The release covers Checkersrallys and its affiliates, stockholders, officers, directors, employees, agents, successors, and assigns.

In practical terms, this means that if a Checkersrallys franchisee decides to sell their franchise, they must sign a document releasing Checkersrallys from any past, present, or future claims. This is a standard practice in franchising to ensure a clean break between the franchisor and the outgoing franchisee, and to provide clarity for the incoming franchisee. The franchisee should carefully review this release with their legal counsel to understand the full scope of what they are giving up.

It is important to note that the release must be satisfactory to Checkersrallys, giving them control over the terms and scope of the release. This requirement ensures that Checkersrallys is adequately protected from potential liabilities arising from the previous franchisee's operation of the business.