If a Checkersrallys franchisee dies or becomes permanently disabled, how long does their representative have to transfer their interest?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon your death or permanent disability or an Owner of a controlling interest in Area Franchisee, the executor, administrator, or other personal representative of such person shall transfer his interest in this Agreement or his interest in Area Franchisee to a third party approved by us in accordance with all of the applicable provisions of Section 7 within a reasonable period of time, not to exceed 9 months from the date of death or permanent disability.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, in the event of the franchisee's death or permanent disability, their executor, administrator, or other personal representative has a limited time to transfer the franchisee's interest. Specifically, the representative must transfer the interest in the Franchise Agreement or the interest in the Area Franchisee to a third party approved by Checkersrallys.
The timeframe allowed for this transfer is a "reasonable period of time," but it cannot exceed nine months from the date of death or permanent disability. This means the representative needs to act swiftly to find a suitable buyer and complete the transfer process within this period.
It is important to note that the transfer is subject to Checkersrallys's approval, and the third party must meet the standards outlined in Section 7 of the agreement. This ensures that any new franchisee meets Checkersrallys's criteria and can maintain the brand's standards. This requirement protects the Checkersrallys brand and other franchisees by ensuring that new operators are qualified and approved by the franchisor.