If Checkersrallys exercises its right of first refusal, how many days do they have to consummate the transaction?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the option, exercisable by notice delivered to you or your Owners within thirty (30) days from the date of delivery of a complete and accurate copy of such offer to us, to purchase such interest for the price and on the terms and conditions contained in such offer, provided that: (a) we may substitute cash for any form of payment proposed in such offer; (b) our credit shall be deemed equal to the credit of any proposed purchaser; and (c) we will have not less than ninety (90) days from the option exercise date to consummate the transaction.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee or owner of a Checkersrallys franchise desires to transfer the franchise for legal consideration, they must first obtain a bona fide, executed written offer along with an earnest money deposit of at least five percent of the offering price from a responsible purchaser. This offer must be presented to Checkersrallys.
Checkersrallys then has the option to purchase the franchise interest themselves, exercisable within thirty days of receiving the complete and accurate offer. If Checkersrallys decides to exercise this right of first refusal, they have a specified timeframe to finalize the transaction.
Specifically, Checkersrallys is granted not less than ninety days from the date they exercise their option to consummate the transaction. This allows Checkersrallys adequate time to arrange financing, conduct due diligence, and complete the purchase, ensuring a smooth transition of ownership.