If transferring a Checkersrallys franchise agreement, does the transferee have to upgrade or remodel the restaurant according to Checkersrallys' current standards?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) the transferee agrees (if the transfer is of this Agreement) to upgrade, remodel, expand and/or remodel the Franchised Restaurant in accordance with our current prescribed plans, specifications and design model for Restaurants (including, without limitation, any modifications or adjustments we authorize and timely introduce for similarly-situated Restaurants, or otherwise incorporate into the System for all franchisees) and to add or replace fixtures, furniture, equipment, signs and supplies in accordance with our then current requirements and specifications for Restaurants within the time period we specify following the effective date of the transfer (we will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken);
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys' 2025 Franchise Disclosure Document, if you are transferring your franchise agreement, the transferee must agree to upgrade, remodel, and/or expand the franchised restaurant. This must be done in accordance with Checkersrallys' current prescribed plans, specifications, and design model for restaurants. This includes any modifications or adjustments Checkersrallys authorizes and introduces for similarly situated restaurants, or otherwise incorporates into the system for all franchisees.
The transferee must also add or replace fixtures, furniture, equipment, signs, and supplies in accordance with Checkersrallys' then-current requirements and specifications for restaurants. These upgrades and changes must be completed within the time period that Checkersrallys specifies following the effective date of the transfer.
Importantly, Checkersrallys will inform the transferee of the specific actions required and the timeframe for completion before the transfer's effective date. This ensures the transferee is aware of the obligations before finalizing the transfer. There are some exceptions to this requirement when transferring a franchise among current owners or immediate family members.