What is the Checkersrallys franchisee's obligation regarding computer software licensed by Checkersrallys or its affiliates upon termination or expiration?

According to Checkersrallys's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately cease using all computer software licensed by Checkersrallys or its affiliates. Furthermore, the franchisee must comply with all obligations outlined in any software license agreements. This requirement ensures that the franchisee no longer utilizes Checkersrallys's proprietary software after the agreement ends.

This provision is standard in franchise agreements to protect the franchisor's intellectual property and operational systems. By requiring the franchisee to stop using the software, Checkersrallys prevents unauthorized use of its systems and data. This also ensures a clean break in terms of technology and operational dependencies between Checkersrallys and the former franchisee.

In practical terms, a franchisee should have a plan for transitioning away from the licensed software well before the termination or expiration date. This may involve procuring alternative software solutions or discontinuing certain services that rely on the licensed software. The franchisee should also ensure that all data and information are properly migrated or backed up before ceasing use of the software to avoid any data loss or business disruption.

It is also important for the franchisee to carefully review the software license agreements to understand any specific obligations related to the return or destruction of the software and related materials. Compliance with these obligations is essential to avoid any potential legal issues or penalties from Checkersrallys.