What must a Checkersrallys franchisee sign if they renew or transfer their franchise in California?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign a general release if you renew or transfer your franchise.
California Corporations Code § 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§ 31000 through 31516).
Business and Professions Code § 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§ 20000 through 20043).
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, a franchisee in California must sign a general release if they renew or transfer their franchise. This requirement means that as part of the renewal or transfer process, the franchisee will be asked to release Checkersrallys from any potential claims or liabilities.
However, the FDD also notes that California Corporations Code § 31512 voids a waiver of rights under the Franchise Investment Law and Business and Professions Code § 20010 voids a waiver of rights under the Franchise Relations Act. This means that while a franchisee must sign a general release, they cannot waive certain rights granted to them under California law.
Prospective franchisees should be aware of this requirement and understand the implications of signing a general release. It is advisable to consult with legal counsel to fully understand their rights and obligations before signing any such release, especially considering the interplay between the release requirement and the protections afforded by California franchise laws.