What release must be executed by the transferor when transferring Checkersrallys Development Rights?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) You and your Owners and Affiliates must, except to the extent limited or prohibited by applicable law, execute a general release, in form and substance satisfactory to
us, of any and all claims against us, our Affiliates and stockholders, officers, directors, employees, agents, successors and assigns;
(i) you (and your Immediate Family) will not, for two (2) years beginning on the transfer's effective date, engage in any of the activities proscribed in Section 9.02 below; and
(j) You and your Owners and Affiliates must execute such other documents and do such other things as we reasonably require to protect our rights under this Agreement and any Franchise Agreements.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, when transferring Development Rights, the transferor, along with their Owners and Affiliates, must execute a general release. This release must be in a form and substance that is satisfactory to Checkersrallys. The release covers any and all claims against Checkersrallys, its Affiliates, stockholders, officers, directors, employees, agents, successors, and assigns.
In practical terms, this means that as a condition of transferring your Development Rights, you must waive any existing or future legal claims against Checkersrallys. This is a significant requirement, as it limits your ability to seek legal recourse against the franchisor, even for issues that may arise in the future. Franchisees should carefully consider the implications of this release and consult with an attorney to understand the full scope of the rights they are waiving.
It's important to note that the FDD also includes a modification for franchisees in Minnesota. Under Minnesota Rule 2860.4400D, Checkersrallys is prohibited from requiring a general release. This highlights the importance of understanding how state-specific regulations can impact the terms of the franchise agreement. Franchisees in other states should be aware of any similar protections that may exist in their jurisdiction.
Additionally, for two years following the transfer's effective date, the transferor and their Immediate Family must not engage in activities proscribed in Section 9.02 of the agreement. The transferor, Owners, and Affiliates must also execute any other documents and actions reasonably required by Checkersrallys to protect its rights under the Development Rights Agreement and any Franchise Agreements.