Is a Checkersrallys franchisee required to be in compliance with all agreements to transfer the franchise?

According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must be in compliance with all agreements to transfer their franchise. Specifically, the franchisee and their Owners and Affiliates must be in compliance with the provisions of the Franchise Agreement and all other agreements with Checkersrallys or any of its Affiliates.

This requirement ensures that franchisees have met their contractual obligations before transferring the franchise to a new owner. This protects Checkersrallys's interests and maintains the integrity of the franchise system.

If the franchisee or their related parties are not in compliance, Checkersrallys can withhold approval of the transfer. This condition is standard practice in franchising, as franchisors typically want to ensure that transferring franchisees are in good standing to avoid potential liabilities or damage to the brand's reputation.