After Checkersrallys provides an Appraisal Notice, what access must the franchisee grant to Checkersrallys, its agents, and the Appraiser?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
At any time following our providing you an Appraisal Notice, we shall have the unrestricted right to assign this option to purchase separate and apart from the remainder of this Agreement, including, without limitation, to another third-party franchisee. Upon such notice, you may not sell or remove any of the personal property of the Franchised Restaurant from the Premises and must give us (or our assignee), our (or our assignee's) designated agents and the "Appraiser" (as defined below) full access to the Franchised Restaurant and all of your books and records at any time during customary business hours in order to conduct inventories and determine the purchase price for the Purchased Assets.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, after Checkersrallys provides an Appraisal Notice to a franchisee, the franchisee must grant specific access to certain parties. This notice is given when Checkersrallys exercises its right to purchase the franchisee's personal property used in the Franchised Restaurant upon termination or expiration of the franchise agreement. The franchisee is then obligated to provide access to the restaurant and its records.
Specifically, the franchisee must give Checkersrallys (or its assignee), their designated agents, and the Appraiser full access to the Franchised Restaurant. This access extends to all of the franchisee's books and records. The access must be granted at any time during customary business hours. The purpose of this access is to allow these parties to conduct inventories and determine the purchase price for the Purchased Assets, which include personal property used in the restaurant, such as inventory, materials, supplies, furniture, equipment, and signs.
This requirement ensures that Checkersrallys and its representatives can accurately assess the value of the assets they may purchase. The franchisee cannot sell or remove any personal property from the premises after the Appraisal Notice is given. This prevents the franchisee from diminishing the value of the assets before Checkersrallys can evaluate them. The franchisee's cooperation is essential for Checkersrallys to make an informed decision about purchasing the assets and to ensure a smooth transition upon termination or expiration of the franchise agreement.